Dole Food Company executives have reportedly said they would consider moving the business out of Delaware if changes aren't made to the state's laws for appraisal claims.

Website Delawareonline.com reported appraisal claims have surged in recent years, brought by hedge funds challenging the outcomes of corporate takeovers like David Murdock's US$1.2 billion buyout of the produce multinational in 2013.

The story reported shareholders could challenge the price of corporate buyouts in court, and whether they won or lost they would be entitled to a 5.75% interest on their stake under Delaware law.

"Dole, like other companies incorporated in Delaware, has been spending millions of dollars in defense costs due to appraisal litigation initiated by hedge funds," Dole president C. Michael Carter reportedly wrote to lawmakers in December.

The story reported that Carter called the litigation "abusive", recommended changes and attached draft legislation.

The corporate law council of the Delaware State Bar Association proposed a measure to limit the accrual of interest through legislation that would allow companies to pay shareholders upfront, the story reported, however the measure does not address Dole's requests.

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