Castle & Cooke Stays Above Murdock Offer
The pressure continues on Hawaiian landowner Castle & Cooke (CCS), which saw its shares close at a 52-week high of $19.75 Thursday even though Los Angeles real estate developer David Murdock has agreed to buy the company for $19.25 a share.
According to Wall Street sources, someone has been accumulating a big stake in the company this week.
Some analysts believe that Murdock will either increase his offer or pay off dissenting shareholders--who believe his bid is too low--following a court-ordered appraisal of Castle & Cooke. There’s also the possibility that someone else will make a run for the company.
All told, 1.4 million shares have change hands this week, or more than 10% of the shares that Murdock doesn’t already own.
Sources said Morgan Stanley Dean Witter and Jefferies & Co. are buying for an unnamed client.
Separately, Murdock said attorneys in eight shareholder lawsuits will win fees of up $5 million for reaching an agreement with Murdock to settle. The attorneys earlier this month convinced Murdock to raise his offer by 75 cents a share from $18.50. For their trouble, the lawyers will get the equivalent of 40 cents a share.
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