US dairy processor Dean Foods and organic food company Horizon Organic have announced that two shareholders have filed class action complaints against the two companies alleging that the amount to be paid to Horizon Organic shareholders as part of Dean’s proposed takeover of Horizon Organic is unfair.
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The complaints also allege that the two companies did not look after the best interests of Horizon Organic shareholders.
Tom McCloskey, chairman of the board of directors of Horizon Organic, said: “The proposed acquisition of Horizon Organic by Dean Foods is in the best interests of the Horizon Organic shareholders. We are very pleased with the consideration to be paid and are confident that it represents a full and fair price to Horizon Organic’s shareholders.”
“We believe these lawsuits are without merit, and we intend to vigorously defend them,” said Gregg Engles, chairman and CEO of Dean Foods. “We continue to expect to close this transaction in the fourth quarter.”
Dean Foods and Horizon Organic announced on Monday the signing of a definitive agreement by which Dean Foods will acquire the 87% equity interest in Horizon Organic it does not currently own for a cash price of US$216m, or $24 per share, and the assumption of approximately $40m in debt.
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By GlobalData
