Dole CEO and Chairman Announces $13.50 Buyout Offer (DOLE)

It was announced during Monday’s pre-market that Dole DOLE will be acquired for $13.50 per share. This is a 5.4 percent premium to Friday’s close of $12.81.


The company’s Chairman and CEO, David Murdock, originally offered to buy the company for $12.00 per share on June 10th, when the company was trading at just $10.20.


With an enterprise value of 1.6 billion, Murdock looks to buy the shares with a combination of cash and financing from various banks.


The deal is contingent on a majority vote from shareholders. The initial offer of $12 was swiftly rejected by the company's owners, who sued the board of directors for not working to get the best deal for its shareholders. Trading activity seems to indicate hesitancy that the new offer will be accepted.


Related: Top 4 Small-Cap Stocks In The Food-Industry With The Lowest PEG Ratio


At 90 years old, Murdock seems to be buying the company for the sake of his family trust, commenting that the company will be better off “without the concern that a public company must have for the investing public’s short-term expectations.”


Analysts seem to expect the deal to go through. First, $13.50 is a huge premium to both the $12 (12.5 percent) initially offered and $10.20 (32.4 percent) before the original bid.


In addition, Dole doesn't have any activist investors who are likely to step in and work against the deal. For example, with Carl Icahn as an activist investor in Dell DELL, Michael Dell has been struggling to persuade shareholders to accept his offer for the company.


Shares of Dole spiked in the premarket to $13.50 on light volume, but pulled back to open at $13.45.

Posted In: NewsManagementM&ADavid Murdock
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