DELAWARE – Dole Food Inc. CEO, David Murdock, was on trial yesterday defending his 2013 buyout and privatization of the company.
As we previously reported, Murdock, members of the Board of Directors, and Deutsche Bank AG, which helped to structure the deal, all sought to have the case thrown out but were not successful. Delaware Chancery Judge Travis Laster refused to dismiss the case and set the trial for February 23.
Reuters reports that the attorney for the shareholders, Stuart Grant, questioned Murdock for over five hours in a Delaware court yesterday to try to establish that he dominated the Dole board before he privatized the company and manipulated stock prices.
During the trial, Murdock told the judge that the deal, which featured a $13.50-a-share offer for the 60% of Dole he or his family didn’t already own, was structured in an “honest and honorable” manner, according to Bloomberg.
“We did a fair and honest transaction that is now being made to look like a dirty skunk did this and his name is Murdock,” he told Judge Travis Laster.
Murdock is currently facing investors’ claims over taking the world’s largest fresh fruit and vegetable producer private while buyout deals continue across the industry, like the recent acquisition of Chiquita by Cutrale/Safra for $14.50 a share.
Bloomberg reports that the case involves both class-action claims filed by some investors and a request by shareholders for an appraisal of the value of Dole’s stock before the deal.
For the class action, investors are asking for $11.70 a share more than the $13.50 the company offered, according to court filings.
Murdock could be required to pay hundreds of millions of dollars if it is proven that he manipulated the sales process to buy Dole for a discount.
Stay tuned to AndNowUKnow as we continue to follow this trial.
