Diamond Foods Crashes on Walnut Crop Payments
Shares of Diamond Foods (Stock Symbol: DMND) extended their decline as concerns about the delay in its Pringles Acquisition from Procter & Gamble (Stock Symbol: PG) dragged on into this week.
Diamond Foods is a snacks purveyor with deals for Pop Secret Popcorn and Kettle Chips and owns the Emerald Nuts and Diamond of California Nuts brands.
Shares in Diamond Foods crashed from $64.12 per share to $52.79 per share on November 2, 2011 after pushing back the closing date for its deal to acquire the Pringles chip brand.
The deal was expected to close in December 2011, however, Diamond’s audit committee is reviewing an outside letter it received about the company’s accounting for certain crop payments to walnut growers. Diamond said the Pringles acquisition from Procter & Gamble is now slated to close sometime before June 2012.
On September 21, 2011 — Diamond Foods had hit an all-time high of $96.13 per share.
On November 9, 2011 — Diamond Foods closes at $39.74 per share, down 59% from its 52 week high.
Tags: 52 Week High, Acquisition, Audit Committee, Crashes, December 2011, Diamond Foods, Diamond of California Nuts, DMND, Emerald Nuts, June 2012, Kettle Chips, P&G, Pop Secret Popcorn, Pringles, Procter and Gamble, Snacks, Walnut Crop