Food Lion sues Dairy Farmers over monopoly concerns
Food Lion LLC and a milk producers cooperation association for Maryland and Virginia have sued Dairy Farmers of America Inc. to halt what they call a transaction that would lead to a monopoly over the milk industry.
Dairy Farmers, based in Kansas City, Kan., closed May 1 on a $425 million deal to purchase 44 Dean Dairy properties and other assets, including one each in Winston-Salem and High Point. Dean Foods Co. voluntarily filed for Chapter 11 bankruptcy protection on Nov. 11.
The plaintiffs are requesting a preliminary injunction on the sale, and that Dairy Farmers be required to sell at least one former Dean facility to an independent purchaser.
The Maryland and Virginia milk producers cooperative is the “only significant remaining competitor” for Dairy Farmers in the Carolinas, according to the lawsuit.
The plaintiffs claim that Dairy Farmers’ acquisition of the Dean Dairy milk-processing properties creates a milk producing and milk processing monopoly and gives it “both the ability and the incentive to wipe out any remaining pockets of competition.”
Krispy Kreme parent company plans Peet’s IPO
The parent company of Krispy Kreme Doughnuts Inc. said Tuesday its JDE Peet’s subsidiary plans an initial public offering and the stock listed on the Amsterdam Stock Exchange.
The IPO is projected to be worth $770 million with the possibility of a secondary offering to existing shareholders increasing the offering up to $2.2 billion.
JDE Peet’s is the holding company for Peet’s Coffee. JDE Peet’s expects to use the proceeds to repay debt.
JAB said it plans to remain a majority shareholder of JDE Peet’s.
Moody’s Investors Service said that “a successful listing of JDE Peet’s will significantly increase the share of listed investments in JAB’s portfolio, and enhance the liquidity of the portfolio.” JAB had 53% of its investments publicly listed as of Dec. 31, but not Krispy Kreme.
Truliant gains Freddie Mac assistance with mortgage eNotes
Truliant Federal Credit Union said Wednesday that Freddie Mac will begin buying electronic mortgage notes as collateral for mortgage-backed securities.
The eNotes are part of a digitized mortgage eClosing process that is designed to significantly shorten how long it takes home buyers, sellers and lenders to close a mortgage.
ENotes are an electronic version of a promissory note. They contain the same information that is in a traditional mortgage paper note but are created, signed and managed digitally.
Truliant, a seller/servicer, completed its first end-to-end eClosing in March.
ENotes require documents to be stored digitally to ensure the same legal enforceability as paper documents. The eNote is a critical document that needs to meet the ‘transferable record’ requirements of electronic transactions laws.
Insteel board declares 3-cent quarterly dividend
The board of directors for Insteel Industries Inc. declared Tuesday a quarterly cash dividend of 3 cents per share on its common stock.
The dividend is payable June 26 to shareholders registered as of June 12.
American National board declares 27-cent dividend
The board of directors for American National Bankshares Inc. declared Wednesday a 27-cent dividend.
The dividend is payable June 19 to shareholders registered as of June 5.