Bloomberg News

Dean Foods Extends Weekly Gain, Reaches Two-Year High

October 19, 2012

Dean Foods Co. (DF:US), the largest U.S. dairy processor, extended its weekly gain to 24 percent and reached a two-year high after its WhiteWave Foods Co. (WWAV:US) unit filed for an initial public offering.

WhiteWave, the maker of Silk almond milk, filed on Oct. 17 to raise as much as $320 million as Dean tries to generate cash to pay off debt. WhiteWave expects to contribute as much as $282 million of the proceeds from the offering and $885 million of new borrowings to Dallas-based Dean, which will use those funds to repay debt, a regulatory filing showed.

Dean gained 63 cents, or 3.5 percent, to $18.57 at 10:39 a.m. in New York on volume of 3.01 million shares. The 15-day average is 4.56 million. Volume was 13.4 million on Oct. 17 and 10.9 million yesterday. The price reached $18.63, the highest level since January 2010.

Dean also said last month it may sell its Morningstar unit, which makes dairy products for restaurants.

To contact the reporter on this story: Richard Stubbe in Houston at rstubbe1@bloomberg.net

To contact the editor responsible for this story: Dan Stets at dstets@bloomberg.net


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Companies Mentioned

  • DF
    (Dean Foods Co)
    • $16.45 USD
    • -0.48
    • -2.92%
  • WWAV
    (WhiteWave Foods Co/The)
    • $31.02 USD
    • 0.37
    • 1.19%
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