Dole Food Co. Inc. (DOLE) confirmed that it is in advanced
discussions with Japanese trading house Itochu Corp. (ITOCY,
8001.TO) for the possible sale of its packaged-foods and Asian
fresh fruit and vegetable businesses.
Dole shares jumped 10% to $14.14 in recent trading. The stock is
up 63% so far this year.
The fruit and vegetable producer said that no definitive
agreements have been reached, and it continues to be in discussions
with several other parties regarding these and other assets.
The Nikkei, a business news outlet, reported that Itochu is
poised to purchase the U.S. firm's businesses for as much as $1.7
billion.
Itochu and Dole aimed to reach an agreement this month, the
Nikkei reported, targeting the buyout's completion during the
current fiscal year.
Dole launched a strategic review of its businesses in May after
reporting a slump in profits. The company said in July that it was
considering a full or partial separation of one or more of its
business, including potential spin-offs, joint ventures and sales
transactions.
Dole's second-quarter profit fell 21% as the company saw lower
fresh fruit revenue, though sales of fresh vegetables and packaged
foods improved.
Itochu's American depositary shares fell about 1% to $20.29. The
ADS are down 8.9% in the last six months.
Write to Kristin Jones at kristin.jones@dowjones.com
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