Reddy Ice Holdings in freefall after DOJ executes search warrant
Reddy Ice Holdings, Inc. (NYSE: FRZ) are in a freefall after the maker and distributor of packaged ice revealed that federal officials searched the company’s corporate office in Dallas. The execution of the search warrant was made by the Department of Justice’s Antitrust Division in connection with an investigation of the packaged ice industry. Reddy Ice Holdings is the largest U.S. manufacturer of packaged ice.
Reddy Ice initially disclosed that its offices were searched by the DOJ but declined to provide a reason. The initial stated prompted Wachovia to downgrade Reddy Ice shares to “market perform” from “outperform.” In a note to investors, Wachovia said shares will likely trade erratically until more details are available.
Reddy said it formed an independent committee to conduct an internal investigation.
In afternoon trading, FRZ shares are plunging to new year lows — down 35.79%, or $8.18, at $14.93. Over the last 52 weeks, shares have ranged from $11.73 to $32.31.
