DFA Steps Back From Dean Foods Takeover Bid
Dairy Farmers of America and Dean Foods have pulled back a proposal for DFA to purchase Dean’s assets, but the Kansas City-based cooperative could still make a bid for the bankrupt milk processor. The move announced late last week allows for a competitive bidding process. In a statement, Dean Foods says, “by avoiding unnecessary litigation regarding procedure and bid protections for DFA, all parties involved, including DFA, will focus on developing competitive and value-maximizing bids.” Dean Foods filed for Chapter 11 bankruptcy in November, and will have its assets sold in a court-administered auction process. DFA made an offer to buy Dean Foods for $425 million, plus the assumption of various liabilities. Officials with the two firms said Friday that they mutually agreed to withdraw the request that DFA’s bid be considered the baseline.