US-based Dole Food has received a proposal from David H. Murdock, the company's chairman of the board and CEO, to acquire all of the outstanding shares of common stock which are not already owned by him in a deal which values the company at $1.5bn.
Under the terms of the agreement, Murdock, who already owns 40% stake in the company, will pay $12 per share in cash for the remaining 60% stake, in a $645m transaction.
Dole stated that the board of directors will hold a meeting over the next several days to set up a special committee of independent directors to consider Murdock's proposal and its implications, in assessing the appropriate course of action that is in the best interests of the company and its stockholders.
In 2003, Murdock took the California-based company private for $2.5bn and took it public in 2009 for $446m by selling shares at $12.50 each which valued the company at more than $1bn.
Murdock served as CEO for Dole from 1985 to 2007; however, he returned to his position earlier this year after the existing CEO stepped down to run Dole's worldwide packaged foods and Asia fresh businesses which has sold to Japanese trading house ITOCHU in a $1.68bn all-cash deal.
Dole Food is one of the leading producers and marketers of fruit and vegetables. The company reported $4.2bn in revenues from continuing operations in 2012.
