The chairman and CEO of Dole Food Co. (NYSE: DOLE), David H. Murdock, made a $12 a share offer to acquire the 60% of the company’s stock he did not already own back in early June. This morning the company announced that it had approved a sweetened offer of $13.50 a share for a total purchase price of $1.6 billion.
Murdock, a 90-year old billionaire, took Dole private in 2003 and then public again in 2009 at $12.50 a share. Today’s offer reflects a 32% premium to Dole’s share price immediately before Murdock’s first offer.
The acquisition agreement includes a 30-day “go-shop” period during which the company may seek a higher bid. Barring a competing offer the deal is expected to close in the fourth quarter of this year.
At the time of Murdock’s original bid for the company we noted that mergers in the food industry were down 21% compared with 2012. The largest deal on the table is a $4.7 billion offer for pork producer Smithfield Foods Inc. (NYSE: SFD) by China’s Shuanghui International Holdings. That deal has come under scrutiny by a congressional committee concerned about the safety and availability of an anticoagulant drug that is derived from pig intestines.
Dole’s shares are up about 5% at $13.46 in early trading Monday, in a 52-week range of $9.25 to $15.19.
Take Charge of Your Retirement In Just A Few Minutes (Sponsor)
Retirement planning doesn’t have to feel overwhelming. The key is finding expert guidance—and SmartAsset’s simple quiz makes it easier than ever for you to connect with a vetted financial advisor.
Here’s how it works:
- Answer a Few Simple Questions. Tell us a bit about your goals and preferences—it only takes a few minutes!
- Get Matched with Vetted Advisors Our smart tool matches you with up to three pre-screened, vetted advisors who serve your area and are held to a fiduciary standard to act in your best interests. Click here to begin
- Choose Your Fit Review their profiles, schedule an introductory call (or meet in person), and select the advisor who feel is right for you.
Why wait? Start building the retirement you’ve always dreamed of. Click here to get started today!
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.