Dole investor opposes purchase

By Miles Weiss
Bloomberg News Service

WASHINGTON — A large investor at Dole Food Co. is urging a special board committee to reject Chairman David Murdock's offer to acquire the company's outstanding shares.

Atlantic Investment Management Inc., a New York-based money manager that owns 6 percent of Dole's common shares, believes Murdock's offer of $29.50 a share in cash is "substantially below the fair value of the issuer," according to a Schedule 13D filed with the Securities and Exchange Commission.

Dole, the world's largest fruit and vegetable producer, created a special committee last month to review Murdock's offer, which values the company at about $2.5 billion.

Atlantic put forth its views in an Oct. 1 letter to the chairman of the special committee, the SEC filing said.

Atlantic suggested the committee purchase Murdock's 24 percent stake in Dole at his price of $29.50 a share rather than allow the chairman to take the company private. "The most compelling long-term value-creation opportunity for all" shareholders "is that the issuer remains a public company," Atlantic said in the SEC filing.

Dole, founded in Hawai'i, is based in Westlake Village, Calif., but still has significant real estate holdings in the state.

Company shares rose 15 cents yesterday to close at $29.10 on the New York Stock Exchange.