Dole stock closes lower, chairman praises first day of sale

Dole Food Co.’s stock closed lower than the starting price Oct. 23, the first day of trading on the New York Stock Exchange.

The shares closed at $12.28, down from the starting price of $12.50. In a statement released at the end of trading, Dole’s chairman David Murdock said the pricing of transactions related to Dole common stock totaled $750 million, what he called "one of the largest amounts raised in the public equity capital markets in respect of a U.S. company`s common stock in 2009."

"To raise this much capital in these unusual economic times underscores the strength of Dole as the world`s leading producer, marketer and distributor of fresh fruit and vegetables," Murdock said.

Murdock retains majority ownership in Dole, which he took private in 2003, but said in his statement that “Dole`s new board of directors will satisfy the New York Stock Exchange`s independence requirements and I am looking forward to working with the board in promoting shareholder interests.”

The Westlake Village, Calif.-based company's initial public offering of 35.7 million shares raised $446.4 million. Dole originally expected its stock offering to price between $13 and $15 per share. Dole lowered the initial price of its shares in its October filings with the U.S. Securities and Exchange Commission.

Proceeds of the stock will be used to pay down the company's debt.

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V, October 27, 2009 01:20

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Greg Johnson, Editor, Lenexa, Kan,

You are WRONG sir!

The Packer has deleted comments before where people have commented without using profanity, personal attacks or spam.

Greg Johnson, Editor, Lenexa, Kan., October 27, 2009 09:17

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The Packer pulls comments for three reasons only: profanity, personal attacks or spam. If any poster has had a comment removed, it's for one of those three reasons.

Agwatch, Dublin, October 25, 2009 01:50

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V,

They have "mysteriously" dropped me off before. Its all about protecting the advertising dollars. The challenge to Murdock is to make public the amount of shares that went to institutions (or firms that dont mind sitting on it until he is gone) and employees (the real vote of confidence).

V Smith, Salinas, CA, October 24, 2009 08:41

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Agwatch,

Dont be a bit surprised "IF" the packer erases any of your comments. The editors at The Packer have always seem to be a "Dole" supporter.

Otherwise, I agree wholeheartedly with your comments.

Agwatch, Dublin, October 24, 2009 03:35

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PS-the mis-management is not aimed at the hard working middle managers there, but Murdock himself and the few top banana lieutenants "yes men" he has around him.

Agwatch, Dublin, October 24, 2009 03:31

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Seems like this guy lives in his own fantasy land. Isnt their corporate headquarters somehwere near Disneyland anyway? Dole went private just six years ago but due to mis-management had to go back to raising capital again to address the massive debt they accumulated not only with the privatization, but the debt he took on afterwards when he had no public scrutiny. Someone please answer why investors would trust even more money to this dinasour?

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