Monday, November 29, 2010

Del Monte (NYSE:DLM) Unlikely to Receive Another Bid

Based on the probability Del Monte (NYSE:DLM) won't be receiving another acquisition bid, Deutsche Bank (NYSE:DB) downgraded them from "Buy" to "Hold."

Deutsche said, "Based on the Board’s acceptance of a buyout offer from KKR, Vestar and Centerview for $19 a share in cash, we are changing our fundamental-based opinion to HOLD. As we see it highly unlikely other bidders will emerge, we are also increasing our price target to $19...We aren’t too surprised at the deal multiples for Del Monte given the mix of the attractive pet food operations combined with more commodity-oriented canned FV&T."

Del Monte closed Friday's session at $18.83, gaining $0.84, or 4.67 percent. Deutsche increased their price target on them from $17 to $19 a share.

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