Tags: Dole | buyout | court | payment

Dole CEO, Ex-President Told to Pay $148 Million Over Buyout

Thursday, 27 Aug 2015 12:03 PM

Dole Food Co. Chief Executive Officer David Murdock and a former executive of the fresh-fruit producer were ordered to pay $148.1 million over allegations they drove down the value of the company so Murdock could take it private on the cheap in a $1.2 billion deal.

Murdock received an “improper personal benefit” from the deal, in which he paid $13.50 a share to regain control of one of the world’s largest sellers of fresh fruit and vegetables, Delaware Chancery Court Judge Travis Laster ruled Thursday. The judge also found Michael Carter, Dole’s ex-president, should be held personally liable for investors losses on the buyout.

The two executives’ actions “deprived shareholders of the ability to consider the merger on a fully informed basis,” the judge ruled. Laster also cleared of any wrongdoing officials at Deutsche Bank AG who advised Murdock on the deal.

Morgan Evans, a Dole spokeswoman, said the company didn’t have any comment on Laster’s ruling.

Murdock, with a reported net worth of $3 billion, is the 190th richest American, according to Forbes magazine. The billionaire announced last year he would donate $15 million annually to a North Carolina-based research facility he founded that focuses on nutritional health.

Murdock, Dole’s CEO from 1985 to 2007, returned to the role in 2013. He took the company private once before, in 2003, and then sold 60 percent to the public in 2009.

The 91-year-old Murdock, who has vowed to live to 125, testified in February at the trial that disgruntled investors were unfairly painting him “as a skunk” and that he didn’t engineer the deal to enrich himself.

© Copyright 2017 Bloomberg News. All rights reserved.

   
1Like our page
2Share
Companies
Dole Food Co. Chief Executive Officer David Murdock and a former executive of the fresh-fruit producer were ordered to pay $148.1 million over allegations they drove down the value of the company so Murdock could take it private on the cheap in a $1.2 billion deal.
Dole, buyout, court, payment
267
2015-03-27
Thursday, 27 Aug 2015 12:03 PM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved