• Dole Food CEO launches takeover bid
The Dole Food Company, one of the world's biggest fruit largest producers, received an unsolicited buyout offer from 90-year-old CEO David Murdock. The deal values the company at just over $1 billion.
The buyout news sent Dole shares up 22% to $12.46 on Tuesday (June 11). Murdock’s offer was $12 per share.
The proposed deal is the latest in a string of management-led acquisition bids, topped by Michael Dell's $24 billion offer to take over the computer giant he founded.
"We see this proposed offer as an attractive transaction that is likely to proceed at or relatively close to this price level, especially given Murdock's strong ownership position, CEO role, and apparently strong personal liquidity position," said Jonathan Feeney of Janney Capital markets.
Murdock owns a 40% stake in the company, and recently returned as CEO in February after David DeLorenzo left to run two businesses sold by Dole to Japan's Itochu Corp.
Murdock said he is confident he will get the financing needed to complete the deal and Deutsche Bank would advise on the transaction.
A profile of Murdock by Forbes indicates he was a high school dropout who ran the company from 1985 until 2007. As chairman he took Dole Foods public in 2009. He told Forbes he wants to live to be 125 years old, pinning his hopes on a strict diet and daily exercise.
• General Mills raises profit forecast
General Mills Inc. raised its profit forecast for fiscal 2013 adjusted with an earnings per share ranging between $2.68 - $2.69. This is up from previous guidance of $2.66 - $2.68.
The company also reiterated guidance for fiscal 2014 of high single-digit growth in adjusted earnings per share and increased cash returns to shareholders.
General Mills’ fiscal 2013 ended May 26. The company expects to report full-year results for fiscal 2013 on June 26.