Major shareholder balks at bid


By Michael Felberbaum

AP Business Writer

RICHMOND, Va. (AP) — One of Smithfield Foods Inc.’s largest shareholders says a $4.72 billion takeover bid from China’s largest meat producer falls short of what the company would be worth if sold off piece by piece.

In a letter to the Smithfield, Va.-based pork producer’s board of directors on Monday, the New York-based investment firm Starboard Value LP estimated the company’s value at $9 billion to $10.8 billion, or about $44 to $55 per share. Starboard owns about 5.7 percent of Smithfield’s common stock.

Under the deal struck last month with Shuanghui International Holdings Ltd., Smithfield will sell itself for $34 per share. The deal, which remains subject to regulatory and shareholder approvals, would be the largest takeover of a U.S. company by a Chinese firm, valued at about $7.1 billion, including debt. Smithfield’s stock will no longer be publicly traded once the deal closes, which is expected in the second half of the year.

Smithfield did not immediately comment on Starboard’s letter and a spokesman for Shuanghui declined to comment.

Starboard said that while the deal with Shuanghui does offer some value, shareholders would be better served if the company focused on selling off its various divisions, which include fresh pork and hog production businesses, as well as an international division.

Smithfield’s brands include Springdale-based John Morrell, Armour, and its namesake.


Reader Comments ...


Next Up in Business

4 of the best ways to turn your home into a cash cow
4 of the best ways to turn your home into a cash cow

Your house is a large expense with many associated costs like a mortgage payment, insurance, maintenance and more. It provides a roof over your head, of course, but since it usually costs you money each month, why not put it to work for you and earn some cash in the process? The following are four ways your house can make you money: If you're planning...
6 things to know about working for Uber
6 things to know about working for Uber

Uber has been making headlines in recent months for everything from a new CEO to industry regulation. But if you want to work as a driver for the service that revolutionized the taxi-transport industry, there is more important information about Uber you'll want to check out. Here are six things you need to know about Uber before working for them...
Hatch to Sherrod Brown: ‘Don’t spew this stuff at me’
Hatch to Sherrod Brown: ‘Don’t spew this stuff at me’

Sen. Sherrod Brown and Senate Finance Committee Chairman Orrin Hatch are garnering attention today for a yelling match they had last night at a hearing over the tax reform bill working its way through the Senate. Hatch, a Utah Republican, took umbrage at comments by Brown saying the tax bill will help the rich at the expense of the poor. &ldquo...
Elder-Beerman parent company to close 40 stores
Elder-Beerman parent company to close 40 stores

Bon-Ton Stores Inc., the parent company of Elder-Beerman, will close at least 40 stores by the end of 2018. The retailer will shutter about a sixth of its 260 department stores, furniture galleries and clearance centers. The chain has Elder-Beerman stores at the Dayton Mall, Mall at Fairfield Common and several others at Dayton area locations...
Jeweler offering same-day delivery in Dayton, Cincinnati
Jeweler offering same-day delivery in Dayton, Cincinnati

James Free Jewelers is offering same-day delivery service in select areas throughout Southwest Ohio. The jewelry company has upgraded its website to offer customers the ability to schedule appointments with jewelry experts for private jewelry showings or via video. Customers can also now chat online with a James Free representative. “Imagine...
More Stories