Dole Food Company Inc. (NYSE:DOLE) offers to go private

Posted by Michael Korte June 12, 2013 0 Comment 723 views

The world’s largest producer and seller of fresh fruits and fresh vegetables, Dole Food Company Inc. (NYSE:DOLE) faces the offer from its Chairman and Chief Executive Officer, David Murdock to go private again. This is the second time that the CEO is making an offer to acquire the outstanding shares of the company in not less than 10 years.

David Murdock had offered to purchase the shares Dole Food Company Inc. (NYSE:DOLE) which are not held by him or his family members for an aggregate value of $1 billion, by which he had agreed to pay $12 per outstanding share of the company. The shares of Dole Food Company Inc. (NYSE:DOLE) had surged by 22.16 percent to close at $12.46 per share for the end of last trading session on Tuesday.

The Westlake, Calif based food producer, Dole Food Company Inc. (NYSE:DOLE) had reported a total revenue of $4.2 billion from its continuing operations which had made the company to be one of the largest producers in the world in fresh vegetables and fruits. The board of directors of the company would be meeting in the following days to consider and discuss the proposal made by the Chief Executive Officer to take the company private.

Earlier in 2002, David Murdock had offered to buy the shares of Dole Food Company Inc. (NYSE:DOLE) at $29.50 per share for an aggregate value of $1.25 billion. This proposal finally ended up in closing the shares at $33 per share for an aggregate value of $2.5 billion.

Further, in 2009, Dole Food Company Inc. (NYSE:DOLE) raised around $500 million through an initial public offering to fund its operations. In line with the company’s move to reallocate the idle capital, Dole Food Company Inc. (NYSE:DOLE) had made an affirming decision in March, 2013 to sell away its 24,700 acres of land in Hawaii.

Following this proposal to go private from David Murdock, Dole Food Company Inc. (NYSE:DOLE) had witnessed huge trading volume at 21.39 million shares on Tuesday, while the average trading volume for the company is at 1.28 million shares per day.

About Michael Korte

Michael Korte an investigative reporter at GDP Insider and is a breaking news reporter. Michael work includes investigations of misconduct by federal prosecutors and industrial air pollution around the nation's schools. His reporting has been recognized with the Hillman Prize for Newspaper Journalism, the Grantham Prize for Excellence in Reporting on the Environment, and the Philip Meyer Journalism Award for reporting that incorporates social science methods.

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