Thursday, November 25, 2010

Del Monte Foods for $19.00 (Now Official)

Well, it’s official now… Del Monte Foods (Ticker: DLM) issued a press release stating that it has signed a definitive agreement to be acquired for $19.00 per share by KKR (Ticker: KKR), Vestar Capital Partners and Centerview Partners (click: here). An interesting note is that there is a “Go Shop” clause in which Del Monte Foods can solicit higher bids through January 8th. I wouldn’t be surprised if they are successful in soliciting a higher bid. This company is a prime target for private equity.

Here are my Del Monte Foods trades:

11/19/10 Bought 2X @ $17.549
11/19/10 Bought 1X @ $17.4199
11/19/10 Bought 0.5X @ $17.2999
11/19/10 Bought 0.5X @ $17.1999
11/19/10 Bought 1X @ $17.2496
11/19/10 Sold 1X @ $17.37
11/23/10 Bought 1X @ $17.2196

Net long 5X with an average price of $17.397


11/26/10 Sold 1X @ $18.77

I will hold the remaining 4X to see if anything develops during the "Go Shop" period.


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