Dole Food Company, Inc. today confirmed that European Commission
antitrust authorities have adopted a Statement of Objections against
one of the Company's subsidiaries, and other unrelated banana import
companies, alleging violations of the European Union competition laws
by banana importers within the European Economic Area (EEA). The
Statement of Objections follows searches carried out by the European
Commission in June 2005 at certain banana importers' European offices,
including two of the Company's offices.
A Statement of Objections is a procedural step in the European
Commission's antitrust investigation, in which the Commission
communicates its preliminary view with respect to a possible
infringement of European Union competition laws. The European
Commission will review responses to the Statement of Objections in
order to determine whether to issue a final Decision. Any Decision
(including any fines that may be assessed under the Decision) will be
subject to appeal to both the European Court of First Instance and the
European Court of Justice.
Michael Carter, Dole's Executive Vice President, General Counsel
and Corporate Secretary, stated, "The Company strongly disputes the
European Commission's allegations of anti-competitive behavior and
believes that Dole has not violated the European Union competition
laws." Mr. Carter also stated that "Dole is proud of its reputation as
one of the world's most ethical companies and will continue to
cooperate with the European Commission in order to provide the
Commission with a full and transparent understanding of the banana
market."
As previously reported, the Company recently settled two putative
consolidated class action lawsuits in the United States. The settled
U.S. lawsuits involve direct and indirect purchasers of bananas in the
United States. These two U.S. settlements remain subject to various
court approvals and required notices and are not affected by today's
procedural developments in the European Commission's investigation.
The European Commission investigation involves solely allegations with
respect to the banana market in the EEA.
The Company will present its written and oral response to the
Commission's Statement of Objections over the next several months.
Dole Food Company, Inc., with 2006 revenues of $6.2 billion, is
the world's largest producer and marketer of high-quality fresh fruit,
fresh vegetables and fresh-cut flowers. Dole markets a growing line of
packaged and frozen foods and is a produce industry leader in
nutrition education and research.
This release contains "forward-looking statements," within the
meaning of the Private Securities Litigation Reform Act of 1995 that
involve a number of risks and uncertainties. Forward looking
statements, which are based on management's current expectations, are
generally identifiable by the use of terms such as "may," "will,"
"expects," "believes," "intends" and similar expressions. The
potential risks and uncertainties that could cause actual results to
differ materially from those expressed or implied herein include
weather-related phenomena; market responses to industry volume
pressures; product and raw materials supplies and pricing; changes in
interest and currency exchange rates; economic crises and security
risks in developing countries; international conflict; and quotas,
tariffs and other governmental actions. Further information on the
factors that could affect Dole's financial results is included in its
SEC filings, including its Annual Report on Form 10-K.
