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China/US: Shareholder group letter threatens Shanghai’s record buyout of Smithfield

By  |  September 4, 2013

The massive buyout of Smithfield Foods by China-based Shanghai International Holdings – a deal that would be the largest takeover of a US company by a Chinese firm – could be in jeopardy as a shareholder group told Smithfield it could potentially find buyers to acquire the company for “substantially” more than what the Chinese company is willing to pay.

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    Reports say investor group Starboard Value told Smithfield shareholders it is seeking potential buyers for the company to offer a superior bid over Shanghai International’s $4.7 billion offer.

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    Shanghai and Smithfield announced the deal last May.

    According to reports, the letter sent by Starboard Value, which owns a 5.7 percent stake in Smithfield, is suggesting a restructuring of the company into three parts – hog farms, pork sales and international operations – that would allow the company to demand a higher price. Starboard is seeking a single bid or the company.

    The investor is hoping to delay the shareholder vote for the company’s takeover, currently scheduled for September 24.

    Full Content: USA Today

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