U.S. Justice Department targeting Del Monte Foods in antitrust probe over company's US$5.3B sale to group of private-equity firms led by KKR
November 29, 2011
– The U.S. Justice Department is targeting Del Monte Foods Co. in an antitrust probe over the company’s US$5.3 billion sale to a group of private-equity firms led by KKR & Co., Bloomberg reported Nov. 29.
Stuart Grant, a lawyer for Del Monte shareholders, said in a Nov. 23 court filing that federal prosecutors have been “investigating the facts and circumstances surrounding the sale of Del Monte,” as part of an $89.4 million settlement of investors’ claims over the deal.
Investors in San Francisco-based Del Monte argued in the lawsuit that they weren’t getting enough for their shares in the buyout. Other shareholders, who filed a related federal court suit in San Francisco, questioned whether private-equity firms rigged bids to artificially lower the sales price.
Spokespeople for the Justice Department, Del Monte and KKR either refused comment or could not be reached.
The primary source of this article is Bloomberg, New York, New York, on Nov. 29, 2011.