Dole Shareholders Sue Over CEO’s $645 Million Offer
Shareholders of Dole Food Co. are suing directors of the company for considering a $12-a-share bid by Chief Executive Officer David Murdock, alleging they are potentially shortchanging investors.
Unless the board rejects the offer, it will be violating its legal obligation to get the best possible price for the company, a Dole share-owning family trust claimed in a lawsuit.
“If the board approves the proposed transaction, it will have rubber stamped the transaction without determining whether it maximizes values to minority shareholders,” the investors said in the Delaware Chancery Court suit, according to Bloomberg.
If the offer for the remaining 60 percent of Dole that he or his family don’t already own is accepted, Murdock has announced his intention to take the company private.
Dole was not available for immediate comment.
