Dole Food boss David Murdock offers $1.07 bn in buyout bid

The chairman and CEO of US fruit-and-vegetable producer Dole Food Co, David Murdock, has offered to buy the company for around $1.07 billion.

Murdock, Dole's largest shareholder with about 40 per cent stake, has offered to pay $12 per share, an 18-per cent premium to the stock's closing price on the New York Stock Exchange yesterday.

The California-based company said that it has made no decisions on the proposal but its board will create a special committee of independent directors to assess the bid.

Murdock said that he will not proceed unless the offer is approved by a committee of independent directors and by a majority of the outstanding shares not owned by him.

He has engaged Deutsche Bank to advice on the transaction and has received a ''highly confident'' letter from Deutsche Bank on financing the proposed transaction.

After a decline in profits, Dole launched a strategic review in May 2012, including a full or partial separation of one or more of its businesses, potential spin-offs, joint ventures and sales transactions.

After the strategic review, Dole sold its worldwide packaged foods and Asia fresh produce businesses in April to Japan's Itochu for $1.70 billion in cash.

Dole is the largest producer of fruits and vegetables in the world, selling over 300 products in 90 countries.

It sells food items such as bananas, fresh and packaged pineapples, grapes, strawberries, salads, and other fresh and frozen fruits and juices.