Is Milk Giant Dean Foods Ripe for Takeover?

Shares of Dean Foods Co. have tumbled more than 50 percent in the past 12 months as the company battles a long-term decline in U.S. milk consumption and competition from new plants. The Dallas-based processor has garnered interest from global dairy players in the past, Deutsche Bank analysts including Rob Dickerson said in a note dated Monday. More recently, activist Swiss firm VV Value Vals AG has taken a 10 percent position in the shares and said it may seek talks with management.

“We do believe such scarce dairy processing assets in the U.S. could be an interesting strategic target for a number of potential acquirers,” the bank said. The analysts issued a hold rating on the stock.

Dean Foods declined to comment on the prospect that it may be targeted by an acquirer. The shares closed up 3.5 percent at $8.69 on Wednesday.

Earlier this year, the company announced plans to cut $150 million in annual expenses by 2020 through manufacturing capacity consolidation and other measures.

By: Bloomberg

Source: Dairy Herd Management

Link: https://www.dairyherd.com/article/milk-giant-dean-foods-ripe-takeover

Tags:
Any claim arising from the information contained on the eDairy News website shall be submitted to the competence of the ordinary courts of the First Judicial District of the Province of Cordoba (Primera Circunscripción Judicial de la Provincia de Cordoba), Republic of Argentina, in the city of Córdoba, excluding any other jurisdiction (Federal jurisdiction is also excluded).

*

Criteria in the moderation of comments that eDairy News will take into consideration in all its publications.

  • They will not be considered insults of any kind against anyone,, whether a user, moderator or publisher. Complaints made with the name and surname of the author of the commentary will only be accepted after confirmation by the moderator.
  • Unsubstantiated and gratuitous destructive criticism or expressions of bad taste, whether offensive, racist or xenophobic.
  • SPAM, (Insert links to web pages not related to the subject, provide emails, etc...)
  • Comments that are meaningless with the footnote or the dairy sector.

Related posts


Top