Dean Foods Co.’s shares plunged amid skepticism that the struggling dairy giant would find a buyer.
The company said Tuesday that it’s undergoing a review and contemplating a sale, but there are “no strategic buyers who would be interested in owning a shrinking milk business,” Ken Goldman, an analyst at JPMorgan Chase & Co., said in a report Wednesday.
“If Dean Foods does happen to find a buyer (unlikely, in our view), the stock will probably be purchased at a discount to the current price,” Goldman wrote. “Dean is a levered company with a fast-deteriorating business and numerous out-of-date production facilities.”
Shares fell 16 percent to $3.81 at 9:52 a.m. in New York.