Family Group Acts to Sell 17% of Campbell’s

A group of Dorrance family members that controls 17.4% of Campbell Soup Co. said today it is filing notice with the Securities and Exchange Commission to sell its holdings.

The group said in the filing that it seeks to sell the shares at a price per share “significantly in excess of current market value.”

Campbell’s share soared $4.25 to $57.25 after the announcement, indicating that the market expects the group’s move to bolster any attempt to take over the company.

Camden, N.J.-based Campbell’s has been the object of buyout rumors since the death in April of John Dorrance Jr., a former Campbell chairman who was dedicated to the 120-year-old company’s independence.

Dorrance’s three children said a week ago that they were committed to keeping Campbell’s independent. They control 31% of the world’s largest soup maker.

In today’s filing, the group--consisting of nephews and nieces of Dorrance--said it would prefer the sale of its stock to be part of a tax-free transaction, although it said such a deal would not be a necessity. It also said it will explore methods of advancing the prospect of such a transaction and will support others who are likely to advance its objectives.

The group said it will oppose any attempt by the company to block moves that would push up the stock price.

It said that if the board takes action to oppose a sale at a price the group believes “reflects fairly the full value of the company,” the group will consider pressing for changes in the board of directors.

The family group making the filing consists of Dorrance Hamilton and Samuel Hamilton, Hope van Beuren and John van Beuren, Diana Norris and Charles Norris Jr.

Dorrance Hamilton is a member of Campbell’s board. John van Beuren and Charles Norris were trustees of Campbell’s recently dissolved major shareholders voting trust, which represented about 27% of Campbell’s outstanding shares, including those owned by the family group making the filing.