Shareholder Starboard Value LP votes no on Smithfield sale
Smithfield Foods Inc's shareholder, Starboard Value LP, would be voting against the takeover of Shuanghui International Holdings Ltd. of Virginia-based pork producer.
In a letter addressed to its co-shareholders, the New York-based investment firm said on Tuesday that it would like to wait for more attractive bids that would provide shareholder value greater than what China's largest meat producer is currently offering. Starboard Value LP owns about 5.7% of Smithfield common stock.
A shareholder meeting to decide on the deal between Smithfield and Shuanghui International is scheduled on September 4 in Richmond, Virginia.
Shuanghui International offered a USD7.1 billion bid for Smithfield, deemed as the largest takeover of a US firm by a Chinese company. The deal awaiting regulatory approval, would have Shuanghui pay Smithfield USD4.7 billion at USD34 per share and assume Smithfield's corporate debt.
Also on Tuesday, Shuanghui announced that the company had secured financing at over USD4 billion to fund its takeover.
Join the Conversation