Diamond Foods Drops to 52-Week Low of $21.44 in Today’s Trading

Diamond Foods (NASDAQ:DMND): Proctor & Gamble (NYSE:PG) issued the following Pringles transaction update: “Diamond Foods (NASDAQ:DMND) issued a news release announcing that its financial statements for 2010 and 2011 could not be relied on and would need to be restated.

It also placed its President and CEO, Michael Mendes, and CFO, Steven Neil, on administrative leave and commenced a search for their permanent replacements. This is breaking news for us and the information released by Diamond Foods is very disappointing. Pringles remains a valuable asset and it has attracted considerable interest from other outside parties.

We need to evaluate next steps and we are currently keeping all our options open. As we evaluate the right next steps, we will be guided by what is best for our shareholders and our employees.” The shares closed at $23.13, down $13.53 or 36.91% on the day. They have traded in a 52-week range of $26.11 to $96.13.

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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com