Dole Food Company (NYSE: DOLE) chairman David Murdock has reached an agreement with the business to purchase all remaining shares for US$13.50 each, representing an 8% premium on the price he sold them for in October, 2009.

The deal, officially labeled as a merger agreement with Murdock acting through his affiliates, will still be open to a 30-day "go-shop" period in which a special committee - consisting of four independent board members - will "actively solicit, receive, evaluate and potentially enter into negotiations with parties that offer alternative proposals".

A Dole release said the transaction is expected to close during the fourth quarter of 2013, and would represent a US$1.50 per share premium on Murdock's initial offer.

The US$13.50 price is 32% higher than the level prior to the original proposal.

"The transaction is subject to a number of conditions, including approval by at least a majority of the outstanding shares of common stock held by stockholders of Dole other than Mr. Murdock and his affiliates," the release said.

"The transaction will be financed through a combination of cash and equity contributed by Mr. Murdock, as well as financing that has been committed by Deutsche Bank, Bank of America and The Bank of Nova Scotia."

www.freshfruitportal.com