The stock gained nearly 11 percent, to close at $18.49 a share. That’s roughly in the middle of its 52-week range. The stock is down 1 percent year-to-date.
Hongsheng Beverage, a subsidiary of Wahaha, has approached banks and private equity funds in Hong Kong about teaming up for a possible buyout, the Financial Times reported. But the plans are said to be in the early stages and Wahaha is also said to be considering other acquisition targets.
Dean Foods declined to comment Friday. Officials with Wahaha could not be reached for comment.
Dean Foods has faced a number of challenges, including a nationwide decline in milk consumption as consumers switch to plant-based beverages such as soy milk. Dean did own the largest soy milk maker but spun it off, leaving the company as largely the seller of a price-sensitive commodity.
The company is working to rebrand itself by creating an umbrella brand called Dairy Pure, whose name is printed on milk cartons along with the company’s many regional brands.
Hangzhou Wahaha Import and Export Co., Ltd. produces bottled water , milk and tea drinks, but also is branching out into liquor and children’s clothing, according to the corporate Web site. It seeks to promote «Wahaha products in the international market while also creating and establishing a new brand image for Wahaha in foreign markets.»
The private company had $7.4 billion in sales last year, according to the Financial Times.
Source: DallasNews
Link: http://www.dallasnews.com/business/business/2016/10/28/dean-foods-stock-soars-news-possible-takeover-bid