David Murdock

At current prices, the sale would bring Murdock some $154 million.

The notice comes days after the shares of the world's largest producer of fresh fruits and vegetables reached its highest level in at least 16 years, $43.75 on July 3.

Westlake Village, Calif.-based Dole on Wednesday also reported that its fiscal second-quarter earnings fell at least 16 percent as a stronger dollar ate up profits and because it received lower prices on its fresh vegetables than a year ago.

The company said Murdock intends to use the proceeds from the sale to repay debt and to have more liquidity in his investment portfolio.

No date has been set for the sale, the company said.

Dole shares on Wednesday rose 12-1/2 cents to close at $42.87-1/2 on the New York Stock Exchange.

After the sale, Murdock would still own 9.9 million shares, or 16.5 percent of Dole's shares outstanding. That amount of stock is worth some $424 million at Wednesday's closing price.

"I continue to have great confidence in Dole and its management and will actively be involved in its future," Murdock said in a statement.

Murdock bought into Dole in 1985, when it was known as Castle & Cooke Inc., a Hawaii company founded in the sugar business that had grown into a worldwide food business but had run into serious financial trouble. He arranged a loan to pay off a debt that would have pushed the company into bankruptcy and became its chairman.

Dole still has substantial involvement in Hawaii, owning most of Lanai, including its Manele Bay Hotel and Lodge at Koele. But it has phased out of canned pineapple and is shutting down its Waialua Sugar Co. on Oahu.

The company said that net income for the quarter ended June 15 fell to $63.6 million, or $1.05 a share, from a profit from continuing operations of $41 million, or 69 cents, in the 1995 quarter, excluding a gain from asset sale. A profit of $2.8 million, or 5 cents a share, from since-discontinued operations and a gain 34.9 million, or 58 cents, on an asset sale made year-ago net income $78.7 million, or $1.32 a share, the company said.

The second-quarter results beat the average earnings estimate of $1.03 a share from four analysts polled by Zacks Investment Research.