Dean Food’s shares jumped up by over 11 per cent on Friday as hedge fund firm Appaloosa Management acquired a 7.35 per cent stake in Dean Foods.
Shares in the US dairy giant climbed $1 to $9.89 at 4:15 pm after New Jersey-based Appaloosa Management, founded by billionaire investor David Tepper, bought 13.4m Dean Foods shares.
The increase comes after Dean shares plummeted 51 per cent last year.
Dean’s net income has declined year-on-year for the last four quarters. On the release of its Third Quarter results, the company said earnings were affected by weak consumer spending and higher than anticipated butterfat costs. In the same 9 November statement Dean Foods said it had about $4bn in debt as of 30 September.