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Dole CEO Wants to Purchase All Remaining Shares

Dole (NYSE: DOLE) Chairman and CEO David Murdock made an offer to Dole’s board of directors to purchase the company for $12.00 per share placing a value on it of $1.07 billion.

David Murdock isn’t a household name to most. He’s been CEO of Dole Foods since 1985 and owns 40 percent of the company’s stock. He’s worth about $2.4 billion making him #613 on the Forbes Billionaires list. After he purchased an almost bankrupt Hawaiian company in 1985 that owned Dole, he made Dole the leading producer of fruits and vegetables.

In 2003, he took the public private but in 2009 initiated a $446 million IPO. Now, he plans to take it private again as he bids to purchase the more than 89 million outstanding shares.

How common is it for a CEO to believe so strong in a company that they want to own the whole thing? Michael Dell is currently in the middle of a deal to purchase the company he started. Although he’s up against activist investor Carl Icahn, it appears that Dell (NASDAQ: DELL) will come out on the winning side of the battle.

Mudock has already received pre-approval for financing from Deutsche Bank, according to a press release.

Dole is forming a special committee of independent advisers to study Murdock’s offer.

Disclosure: At the time of this writing, Tim Parker had no position in the equities mentioned.

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