DOLE READY TO BE SOLD.Byline: Gregory J. Wilcox Staff Writer WESTLAKE VILLAGE - Dole dole, distribution to the poor, usually of food or money. In medieval times doles were usually from bequests of money or land, and the income was given to charity or distributed to the local poor at funerals. Food Co., the world's biggest fresh fruit producer, says it has priced its $475 million debt offering related to majority stock holder David H. Murdock David Howard Murdock (1924-), with his net worth of 4.2 billion US Dollars, is the 204th richest person in the world. A high-school dropout, Murdock was drafted by the U.S. Army in 1943. taking the company private. The pricing was done on Monday, and the company announced it on Tuesday. The action means that investors can expect a return of 8.875 percent if stock is held until it matures in eight years. The size of the deal was increased from $375 million. Dole said that proceeds, along with other sources of financing and cash, will be used to pay down and refinance Refinance 1. When a business or person revises their payment schedule for repaying debt. 2. Replacing an older loan with a new loan offering better terms. Notes: When a business refinances they typically extend the maturity date. debt as part of chairman and chief executive officer Murdock's buyout Buyout The purchase of a company or a controlling interest of a corporation's shares. Notes: A leveraged buyout is accomplished with borrowed money or by issuing more stock. of the company. Murdock wants to buy about 76 percent of Dole stock that he and his family do not already own. Dole spokesman C. Michael Carter said shareholders are scheduled to vote on the offer March 26. Murdock is offering $33.50 a share. That's about 14 percent more than he originally offered last September and 37 percent above what shares were trading before the initial offer. Buyouts like this are done when executives and major shareholders believe the stock price is undervalued Undervalued A stock or other security that is trading below its true value. Notes: The difficulty is knowing what the "true" value actually is. Analysts will usually recommend an undervalued stock with a strong buy rating. . Running Dole as a private company could give Murdock more latitude latitude, angular distance of any point on the surface of the earth north or south of the equator. The equator is latitude 0°, and the North Pole and South Pole are latitudes 90°N and 90°S, respectively. in addressing balance-sheet issues than recovering his investment by taking the company public again. Dole shares closed on Tuesday at $33.24, up 15 cents. |
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion