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Two Senior CEOs Show No Signs of Slowing Down

NEW YORK ( TheStreet) -- There's big news in pineapples today, as Dole Food (DOLE) CEO David Murdock has reportedly made an offer to acquire the balance of the company for $12 a share, which represents about an 18% premium to yesterday's close. Murdock, who already owns about 40% of the company, has been a significant buyer of the stock over the past year, perhaps signaling his intentions. Interestingly, David Murdock turned 90 years old this April, and this offer shows that he has no signs of slowing down.

Dole has long been an interesting name in value circles, the asset rich company owns 80,000 acres of land in Central America and 25,000 acres in Hawaii, but has historically had a relatively large amount of debt on the balance sheet, $1.64 billion as of the latest quarter.

But that should be reduced soon; last September the company agreed to sell its packaged foods business to Japan's Itochu Corporation for $1.7 billion in cash. Once completed, that transaction should significantly reduce debt, and associated interest expense. When that sale was announced, Dole shares were trading in the $14 range, and you have to wonder whether current shareholders will be happy to part with their shares for $12. DOLE Chart DOLE data by YCharts

It's been a busy year for Dole, along with the asset sale, last month the company announced a $200 million stock buyback program. While the company has taken great strides to become leaner and meaner, who would have expected a 90 year old CEO would make a play for the company? But this is not just any CEO, Murdock has been quoted in the past saying that he expects to live to 125. More power to him, but it will be interesting to see how this situation will play out.

Murdock is not the only nine-decades-old active CEO; Tootsie Roll's (TR) CEO and Chairman Melvin Gordon is still on the job at age 93. His wife Ellen, at 81, is president and COO. The Gordons effectively control the company via their majority stake in the company's class B shares, which enjoy superior voting rights.
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