Dole shareholders sue directors over privatization plan

June 15
9:28 AM 2013

Shareholders of Dole Food Co. filed a lawsuit against the company's directors accusing them of potentially shortchanging investors after their announcement to potentially acquire the $645 million offer of David Murdock, Dole Food's top executive.

The board of the company will allegedly violate its legal duties to get the best trade for the company unless it declines the offer set by David Murlock. Murlock earlier posted a $12 per share bid for the 60 percent of the company currently not it Murlock or his family's ownership.

"If the board approves the proposed transaction, it will have rubber stamped the transaction without determining whether it maximizes values to minority shareholders," said some of the investors to the Delaware Chancery Court. They hope to ask legal aid to halt the board from proceeding with the deal.

Murdock announced earlier that he is planning to take the company private if his offer is accepted.

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