Polly Peck May Sell Del Monte to Raise Cash

Polly Peck International PLC may seek to raise cash by selling a stake in its Del Monte fruit and produce business to the public early next year, reports published today said.

The Wall Street Journal said proceeds from a possible sale of 40% of Del Monte for $400 million would be used to pay off some of Polly Peck’s $1.58-billion long-term debt.

The Journal account, quoting unidentified sources close to the company, said the public offering also would ease pressure from short-term lenders, who have clamped down on credit lines to Polly Peck.

Separately, the London’s Financial Times quoted Polly Peck Chairman Asil Nadir as saying the interest in Del Monte would be offered on the New York Stock Exchange.

Polly Peck bought Del Monte, the world’s largest distributor of bananas, last year from RJR Nabisco for $875 million. Polly Peck also has interests in Sansui Electronics and the leisure industry.

Polly Peck’s lines of credit were tightened after the Sept. 20 trading suspension in the company’s shares. The suspension stemmed from an inquiry by Britain’s Serious Fraud Office into a possible stock manipulation scheme in Polly Peck shares.

Polly Peck share values dropped by half in a single day last month.

The suspension, which is still in force, has given Polly Peck a liquidity problem.