This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Acquisition Of Dole Food Company, Inc. By Company Chairman And CEO, David H. Murdock, May Not Be In The Best Interests Of Dole Food Company Shareholders

SAN DIEGO and  WEST LAKE VILLAGE, Calif., Aug. 12, 2013 /PRNewswire/ --   Shareholder rights attorneys at Robbins Arroyo LLP are investigating the acquisition of Dole Food Company, Inc. (NYSE: DOLE) ("Dole Food") by company Chairman and CEO, David H. Murdock.  On August 12, 2013, Dole Food and Mr. Murdock announced the signing of a definitive merger agreement under which, Mr. Murdock, through his affiliates, will acquire all of the outstanding shares of common stock of the company not already owned by him for $13.50 per share in cash.

(Logo:  http://photos.prnewswire.com/prnh/20130103/MM36754LOGO)

Is the Merger Best for Dole Food and Its Shareholders?

Robbins Arroyo LLP's investigation focuses on whether the board of directors at Dole Food is undertaking a fair process to obtain maximum value and adequately compensate its shareholders in the merger.  The $13.50 merger consideration represents a premium of only 32.4% based on Dole Food's closing price on June 10, 2013, the last trading day prior to the announcement of Mr. Murdock's initial offer of $12.00 per share.  The 32.4% premium is substantially below the average premium of 48.62% for comparable transactions over the past three years.  In addition, Dole Food has traded as high as $15.19 on September 12, 2012, well above the offer price.

In addition, on July 25, 2013, the company announced its financial results which exceeded analyst earnings per share and net income expectations in the second quarter 2013, and exceeded sales expectations in the first and second quarter of 2013.  In particular, Dole Food released its financial results for the second quarter 2013, reflecting a 10% increase in revenue compared to the same quarter 2012 and a 12% increase in fresh fruit revenue for the same quarter 2012. 

Given these facts, Robbins Arroyo is examining whether Mr. Murdock's offer is inadequate and in his interests rather than in the best interests of the shareholders.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 18,096.90 -106.47 -0.58%
S&P 500 2,098.53 -9.25 -0.44%
NASDAQ 4,967.1410 -12.76 -0.26%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs