Who Else Loves Del Monte? (DLM)

Del Monte Foods Co. DLM is skyrocketing in pre-market trading on reports that KKR KKR is in advanced talks to buy the canned fruits and vegetables company. The private equity firm, named after Jerome Kohlberg, Jr., and Henry Kravis and George R. Roberts, reportedly offered $18.50 per share for the company, according to Reuters. There has been no word or not whether the company would be purchased in a leveraged buyout offer or not. Del Monte has a significant amount of debt on its book, at just over $1.3 billion, and not much cash, so injecting cash into the business makes sense from KKR's perspective. The two company's aim to have a deal in place by December 2, which is when DLM is set to report earnings. Shares of DLM are up $1.78 to $17.49 in pre-market trading, a gain of over 11%.