GABELLI FIRMS HOLD 28.5 DIGIORGIO <DIG> STAKE
  A group of firms led by Gabelli Group
  Inc told government regulators it holds a 28.5 pct stake in
  Digiorgio Corp common stock, and said two partnerships making
  up part of the group may seek control of the company.
      In a filing with the Securities and Exchange Comission, the
  group of firms said it holds 2,430,100 shares of Digiorgio
  common stock. Of the total, 2,059,400 shares are held by GAMCO
  Investors Inc and Gabelli Funds Inc. for investment purposes,
  the group said.
   
      Gabelli-Rosenthal and Partners LP and G and R Partners,
  which hold the remaining 370,700 Digiorgio common shares, told
  the SEC their "purpose is to ultimately obtain control of
  Digiorgio contingent upon approval of Digiorgio," according to
  the SEC filing. 
      As previously reported, Gabelli and Co Inc, acting as
  investment advisor to a group including Gabelli-Rosenthal,
  proposed on June 25 to acquire all Digiorgio common shares for
  a per share price of 20 dlrs in cash, a subordinated note with
  a face value of eight dlrs, 14 pct redeemable preferred stock,
  and one common share of the post-buyout company.
      The June 25 buyout proposal, which remains open until July
  17, also provides that key members of Digiorgio management and
  some of its directors would be invited to remain with the firm
  and participate in the group acquiring the company.
      The proposal is also subject to a due diligence review,
  execution of a merger agreement, arrangement of financing and
  receipt of government approvals, all of which Gabelli and Co
  said could be completed within 60 days.
      Between April 13 and June 26, the entire group led by
  Gabelli Group Inc made net purchases of 403,600 Digiorgio
  common shares at 22.20 dlrs to 26.79 dlrs a share.