Dean Foods CEO strikes advance stock deal

DALLAS - Dairy processor Dean Foods Co. said Friday its chairman and CEO entered into a one-year forward sale agreement for about 950,000 shares of company stock.

Gregg Engles will use initial proceeds of the deal to repay much of a personal loan secured by Dean stock he owns, the company said.

Under the agreement, Engles gets some of the proceeds upon entering the agreement and shares in appreciation of the stock when the deal is completed. He can also take cash settlement and keep the shares covered by the transaction, the company said.

Besides the 950,000 shares covered by Friday's agreement, Engles holds about 4.6 million Dean shares and options representing 2.9 percent of diluted shares outstanding.

In afternoon trading, Dean shares fell 83 cents, or 6.8 percent, to $11.42. The stock earlier set a new year low of $11.29. They have ranged from $12.17 to $29.23 over the past year.

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