China's Shuanghui nears shareholder approval for Smithfield acquisition-sources

September 18
5:58 AM 2013

Sources told Reuters that Shuanghui International was close to getting the approval of Smithfield's shareholders for its planned acquisition of Smithfield Foods Inc. If approved, the USD 4.7 billion deal would be the largest purchase made by a Chinese company of a US firm. For the deal to push through, over 50% of Smithfield's stakeholders would need to say yes to the offer of the Chinese firm. A special meeting would be held on September 24 to decide on the matter.

According to the sources, Shuanghui was already close to reaching that threshold based on the votes that have come in. They said a deal may be reached as early as September 26. They spoke on the condition of anonymity since the information is private.

Reuters reported taht the scheduled vote next week also heightened the pressure on Starboard Value to come up with another plan. The activist investor had opposed the acquisition by the Chinese firm. It was also working on an alternative plan for the world's largest pork producer.

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