The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Globe Investor

News Sources

Take control of your investments with the latest investing news and analysis

Press release from PR Newswire

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

Monday, August 12, 2013

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

18:13 EDT Monday, August 12, 2013

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.

Dole Food shareholders have the option to file a class action lawsuit to secure the best possible price for shareholders and the disclosure of material information so shareholders can vote on the transaction in an informed manner.  Dole Food shareholders interested in information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, ddonahue@robbinsarroyo.com, or via the shareholder information form on the firm's website.

Robbins Arroyo LLP is a nationally recognized leader in securities litigation and shareholder rights law.  The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.  For more information, please go to http://www.robbinsarroyo.com.

Press release link: http://www.robbinsarroyo.com/shareholders-rights-blog/dole-food-company-inc/

Attorney Advertising. Past results do not guarantee a similar outcome.  

Contact:Darnell R. DonahueRobbins Arroyo LLPddonahue@robbinsarroyo.com(619) 525-3990 or Toll Free (800) 350-6003www.robbinsarroyo.com

SOURCE Robbins Arroyo LLP

Products
  • Globe Unlimited

    Digital all access pass across devices. subscribe

  • The Globe and Mail Newspaper

    Newspaper delivered to your doorstep. subscribe

  • Globe2Go

    The digital replica of our newspaper. subscribe

  • Globe eBooks

    A collection of articles by the Globe. subscribe

See all Globe Products

Advertise with us

GlobeLink.ca

Your number one partner for reaching Canada's Influential Achievers. learn more

The Globe at your Workplace
Our Company
Customer Service
Globe Recognition
Mobile Apps
NEWS APP
INVESTING APP
Other Sections