NEW YORK (TheStreet) -- Dean Foods Co. (DF) has been subpoenaed by the U.S. attorney office in Manhattan for documents relating to the food and beverage company's spin-off of its White Wave Food subsidiary in August of 2012, the New York Times reports.
Federal authorities are investigating whether or not trades placed by championship golfer Phil Mickelson and sports gambler William T. Walters were done so with insider knowledge of the company's spin-off plans.
Before the spin-off was announced, Walters and Mickelson placed separate trades in Dean Foods stock which paid off in over $15 million in proceeds for Walters and $1 million for Mickelson, the Times added.
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The investigation into the trades has spanned two years and authorities believe it's possible someone inside Dean Foods provided Walters with advanced knowledge of the White Wave spin-off. Authorities theorize he then shared that information with Mickelson.
Shares of Dean Foods are up 1.94% to $17.89 late Tuesday morning.
Separately, TheStreet Ratings team rates DEAN FOODS CO as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate DEAN FOODS CO (DF) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity and reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, poor profit margins and a generally disappointing performance in the stock itself."