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Dole Food Company, Inc Common S Message Board

  • aloha595 aloha595 Aug 21, 2013 10:04 AM Flag

    New buyout offers

    Dole reports 4 companies asking for more financial info for possible bid. Any ideas who?

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    • I just read the PREM14A filing (read pages 25-35) and there is no competing offer. Under a go-shop provision the bankers have to contact other groups. All this filing says is that they contacted 4 groups and that some of the groups went online to look at the financials. This is by no means a buyout offer. Murdock has all the leverage here since he owns 40% of the stock.

      At $13.50 the stock isn't exactly cheap plus the company has debt and the business is very unpredictable....these are qualities that private equity firms hate. I just pocketed the extra $.20 and sold my stake. Thanks day traders that don't read SEC filings!

      • 1 Reply to sol_rosenberg212
      • Here’s the excerpt that people are getting carried away with. This just says Lazard contacted 4 groups as part of the "go shop" and at least one of them was given access to a website. We don't even know if the PE shop clicked on the link!

        My advice is to read the prior 5 pages and see how close Murdock came to pulling the plug on the offer. He really didn’t want to offer $13.50 ($13.25 was his “final offer”) and he sure as hell isn’t going to increase it further. If he pulls the plug this stock is back at $10. Seems like a horrible risk/reward at $13.70.

        "Beginning on the morning of August 12, 2013, representatives of Lazard began contacting prospective bidders pursuant to the “go-shop”
        provisions under the merger agreement, including Party A, Party B, Party C and Party D. On August 16, 2013, the Special Committee held a
        telephonic meeting with representatives of Sullivan & Cromwell, Richards Layton and Lazard to receive an update on the status of Lazard’s
        conversations with prospective bidders. Also on August 16, 2013, interested parties that had executed confidentiality agreements were granted
        access to an online datasite to commence their diligence review."