Target: Del Monte Foods Co.
Price: $4 billion
Sponsor: Kohlberg Kravis Roberts & Co., Vestar Capital
Seller: Public shareholders
Financial Adviser To Target: Perella Weinberg, Barclays Capital
Earlier, a Delaware judge had put a 20-day delay on the shareholder vote for Del Monte’s $4 billion takeover, according to sister news service Reuters. The judge also enjoined the food company and private equity buyers from enforcing the merger’s no-shop agreement. A no-shop agreement prevents Del Monte from soliciting other buyout offers.
In making its decision, Vice-Chancellor J. Travis Laster of Delaware Chancery Court cited two failures by the Del Monte board—letting its adviser, Barclays Capital, provide financing to the buyers, and letting KKR team up with
As a result of the judge’s decision, Del Monte decided to hire Perella Weinberg “to proactively contact third parties who may be potentially interested in acquiring the company,” the company said in a filing with the U.S. Securities and Exchange Commission.
“As always, our board’s objective is to maximize shareholder value. In that vein, the board has retained Perella Weinberg to proactively contact potentially interested parties and ensure that they are aware of the court’s decision and the additional opportunity it presents,” Del Monte said in a statement. “While we believe that $19 (per share) provides excellent value to shareholders, and that we held a robust go-shop process, we would obviously be receptive to a superior proposal should one emerge,” the company said.
KKR could not be immediately reached by Reuters for comment. In the wake of the judge’s ruling, Del Monte moved its shareholder vote by 20 days to March 7.
Jessica Hall is a Reuters correspondent in New York. This story combines two stories written by Hall, with editing by Bernard Orr, Gerald E. McCormick and David M. Toll