Dean Foods Co. (DF), the largest U.S. dairy processor, extended its weekly gain to 24 percent and reached a two-year high after its WhiteWave Foods Co. (WWAV) unit filed for an initial public offering.
WhiteWave, the maker of Silk almond milk, filed on Oct. 17 to raise as much as $320 million as Dean tries to generate cash to pay off debt. WhiteWave expects to contribute as much as $282 million of the proceeds from the offering and $885 million of new borrowings to Dallas-based Dean, which will use those funds to repay debt, a regulatory filing showed.
Dean gained 63 cents, or 3.5 percent, to $18.57 at 10:39 a.m. in New York on volume of 3.01 million shares. The 15-day average is 4.56 million. Volume was 13.4 million on Oct. 17 and 10.9 million yesterday. The price reached $18.63, the highest level since January 2010.
Dean also said last month it may sell its Morningstar unit, which makes dairy products for restaurants.
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