Replies to post #262 on Dean Foods Co. (fka DFODQ)

[TuMaRu]

Today's action seems to indicate that market is reading this with great skepticism i.e. Deans is giving itself away, and its overall a bad deal for everyone including shareholders. Hence the stock did not go up. If you remember SHLDQ last year, it went from 55 cents to over $2.75 in just a few days. Sears assets had real value that was transferable to other parties. Deans plants apparently have no value except to another milk producer. So this is not going to end well in my revised view.

[SC777]

DFA is assuming all liabilities as part of the $425M purchase - that puts the total value of the buyout at $2.5 billion.

https://www.cnbc.com/2020/02/17/dairy-farmers-of-america-agrees-to-buy-dean-foods-americas-biggest-milk-producer-for-425-million.html

"Dairy Farmers of America announced Monday that it has agreed to buy Dean Foods, America’s largest milk producer, for $425 million.

The dairy co-operative will also assume Dean’s liabilities as part of the deal to acquire 44 of the company’s facilities, as well as other assets."