Dean Foods Advances on Speculation Danone Will Make an Offer
Dean Foods' Schepps Dairy Brand. Dean's profit has plunged
Jon Freilich/Bloomberg
A statue of a cow stands outside Schepps Dairy, a brand owned by Dean Foods, in Dallas. Dean Foods is the largest U.S. milk processor.
A statue of a cow stands outside Schepps Dairy, a brand owned by Dean Foods, in Dallas. Dean Foods is the largest U.S. milk processor. Photographer: Jon Freilich/Bloomberg
Dean Foods headquarters in Dallas
Jon Freilich/Bloomberg
A trolley travels past Dean Foods headquarters in Dallas. Dean climbed as much as 8.1 percent, the biggest intraday gain since March 5.
A trolley travels past Dean Foods headquarters in Dallas. Dean climbed as much as 8.1 percent, the biggest intraday gain since March 5. Photographer: Jon Freilich/Bloomberg
Dean Foods Co., the largest U.S. milk processor, rose in New York trading amid speculation that Groupe Danone SA is seeking to acquire the Dallas-based company.
“As part of our routine business operations, Dean Foods continues to evaluate all of our businesses on an ongoing basis,” Marguerite Copel, a Dean Foods spokeswoman, said today in an e-mailed statement. “It would be inappropriate for us to speculate about what choices we might make in the future.”
Marie-Liesse Calmejane, a spokeswoman for Paris-based Danone, didn’t immediately return calls and an e-mail seeking comment.
Briefing.com reported “chatter” related to the Federal Trade Commission’s permission for Danone to acquire Dean Foods, without citing anyone. Dean climbed as much as 8.1 percent, the biggest intraday gain since March 5.
“This has happened in the past; the same rumor has come up,” Akshay Jagdale, a New York-based analyst for KeyBanc Capital Markets who has a “hold” rating on Dean’s shares, said in an interview. “In response to that, that’s why the stock is up.”
Dean Foods rose 42 cents, or 4.3 percent, to $10.22 at 4:15 p.m. in New York Stock Exchange composite trading.
Longbow Research Analyst Alton Stump said in a report today that certain retailers are reducing the discounting of so-called private-label milk and the price gap with higher-priced brand- name milk fell in recent weeks. Dean Foods said Aug. 3 that its profit declined as retailers discounted private-label milk.
To contact the reporter on this story: Shruti Date Singh in Chicago at ssingh28@bloomberg.net
Rate These Stories
Rate this Page