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Mike Winston
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Sutton View Capital LLC was formed by Mike Winston, CFA after five years of successful arbitrage and event-driven investing at Millennium Partners. The fund is focused on event-driven and intrinsic value investing. Mr. Winston received an MBA in Finance and Economics from Columbia Business... More
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  • DOLE: Proxy Reveals Other Bidders In The Hunt - Go Shop Period Expires Sept. 12th 2 comments
    Aug 21, 2013 1:21 PM | about stocks: DOLE

    Based on the preliminary proxy filed today it appears that the go-shop period will end on September 12th. As of August 16th, interested parties had executed confidentiality agreements and were granted access to an online datasite to commence diligence. The proxy discusses prospective bidders (particularly Party B and Party C) and the stock is now trading through the $13.50 deal price. Companies are taking a close look at DOLE and that is good for shareholders. Murdock has run his play book from 2003 all over again, but the endgame here may look very different thanks to one stubborn fact....

    Remember: 41% ($5.56/share) of the current agreed acquisition price ($13.50/share) consists of assets that can be sold without affecting the earnings power of DOLE. I continue to like DOLE here because we pay 20c (i.e. $13.70 last trade - $13.50 offer price) to get exposure to $5.56 of potential upside. For more on the $5.56 see my full write up on DOLE SeekingAlpha.

    For those with further interest, I'd recommend a close reading of the background of the transaction section of the proxy: http://www.sec.gov/Archives/edgar/data/18169/000119312513341344/d587864dprem14a.htm

    Disclosure: I am long DOLE.

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Comments (2)
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  • Special Situations and Arbs
    , contributor
    Comments (538) | Send Message
     
    Agree. I feel risk/reward continues to be a reason to hold DOLE shares.
    31 Aug 2013, 10:33 PM Reply Like
  • Special Situations and Arbs
    , contributor
    Comments (538) | Send Message
     
    So the go shop expired with no new bids but the DOLE stock price is above 13.50. Any thoughts why?
    13 Sep 2013, 12:01 AM Reply Like
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