Quantcast
Get breaking news alerts via email

Click here to manage your alerts
Big shareholder concedes on Smithfield deal
First Published Sep 20 2013 09:00 am • Last Updated Sep 20 2013 11:05 am

Smithfield Foods Inc.’s largest shareholder says it will vote in favor of a proposed takeover by a Chinese meat producer after failing to find an alternative bidder.

Starboard Value LP had said earlier this month that it would vote against Shuanghui International Holdings Ltd.’s $34 per share offer because it wanted more time to seek alternatives that would provide better shareholder value.

Join the Discussion
Post a Comment

The New York investment firm said Friday that it believes another bidder could have offered shareholders a better deal, but it could not secure an offer under existing time and financial constraints. Unless another proposal emerges, Starboard plans on voting in favor of Shuanghui’s $4.7 billion offer. The vote has been set for Tuesday.

Starboard owns about 5.7 percent of Smithfield’s common stock.

The investment firm had argued that while the deal with Shuanghui does offer some value, shareholders would be better served if the company focused on selling its various divisions, which include fresh pork and hog production businesses, as well as its international divisions.

Because Smithfield is contractually prohibited from seeking superior offers or contacting others who may be interested in acquiring parts of the company, the investment firm sought to find other buyers.

A representative for Smithfield could not be reached immediately for comment.

The deal, which is expected to close by the end of the year, would be the largest takeover of a U.S. company by a Chinese firm, valued at about $7.1 billion including debt. Smithfield is the parent company of Circle Four Farms, a massive hog operation in Milford.

Smithfield shares fell 19 cents to $33.98 in morning trading — just below the offered price.




Copyright 2014 The Salt Lake Tribune. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Top Reader Comments Read All Comments Post a Comment
Click here to read all comments   Click here to post a comment


About Reader Comments


Reader comments on sltrib.com are the opinions of the writer, not The Salt Lake Tribune. We will delete comments containing obscenities, personal attacks and inappropriate or offensive remarks. Flagrant or repeat violators will be banned. If you see an objectionable comment, please alert us by clicking the arrow on the upper right side of the comment and selecting "Flag comment as inappropriate". If you've recently registered with Disqus or aren't seeing your comments immediately, you may need to verify your email address. To do so, visit disqus.com/account.
See more about comments here.
Staying Connected
Videos
Jobs
Contests and Promotions
  • Search Obituaries
  • Place an Obituary

  • Search Cars
  • Search Homes
  • Search Jobs
  • Search Marketplace
  • Search Legal Notices

  • Other Services
  • Advertise With Us
  • Subscribe to the Newspaper
  • Access your e-Edition
  • Frequently Asked Questions
  • Contact a newsroom staff member
  • Access the Trib Archives
  • Privacy Policy
  • Missing your paper? Need to place your paper on vacation hold? For this and any other subscription related needs, click here or call 801.204.6100.