Campbell Soup Stock Jumps 15% on Takeover Talk

Campbell Soup Co.’s share price jumped almost 15% Monday on takeover speculation following news that former Chairman John T. Dorrance Jr., whose family controls nearly 58% of its stock, died over the weekend.

Campbell’s stock jumped $4.875, or 14.6%, to $38.25 as the third most active issue on the New York Stock Exchange. When the market opened, trading in Campbell was delayed for nearly an hour.

Securities analysts said the former chairman’s death ignited takeover speculation because Dorrance family members may consider selling their stake in the food company, best known for its wide range of red-and-white labeled soups.

“Everyone knew that Jack (John Dorrance) did not want to sell. Maybe now his family would be more amenable to selling,” said securities analyst Pavlos Alexandrakis of Argus Research Corp.

Securities analysts and traders said they knew of no offers for Campbell, whose products include cookies, juices and chocolates and are distributed under the Pepperidge Farm, V-8, Godiva and Franco-American brand names, among others. But analysts said the company had been rumored as a takeover candidate before and that Dorrance’s reluctance to sell had been seen as an obstacle.

Dorrance, 70, died Sunday morning of an apparent heart attack, the company said in a statement. He had a long history of heart problems that led to triple bypass surgery in 1982.

Dorrance retired in 1984 after 22 years as chairman but had remained active as a member of Campbell’s board. He joined the company in 1946.

Dorrance was the son of Dr. John Dorrance Sr., former Campbell president and the originator of the concept of canned condensed soup. Dr. Dorrance died in 1930.