Hong Kong-based Shuanghui International Holdings intends to offer a counter bid for Spanish meat processor Campofrio. Mexican food company Sigma Alimentos earlier offered Campofrio a takeover deal worth EUR695 million.
Due to the lack of competitive offers, Starboard Value throws its support behind Shanghui's bid for the takeover of Smithfield.
Shuanghui International Holdings and Smithfield Foods Inc released a joint statement saying they received another clearance from the U.S. Committee on Foreign Investment on the food firms' USD4.7 billion takeover deal.
According to activist hedge fund Starboard Value, there had been several investors who were willing to pay more for Smithfield Foods than the offered price of China's Shuanghui International Holdings.
Shuanghui International's US$4.7 billion bid for Smithfield Foods raised an additional US$5 billion from international banks.
C. Larry Pope said that there would not be any change in management following the US$4.7 billion takeover deal of Smithfield Foods Inc by Shuanghui International.
On Wednesday, US Senators questioned the head of Smithfield Foods Inc as they looked for answers over the proposed sale of the company to China’s Shuanghui International.
C. Larry Pope said takeover by the Chinese would not change anything.
CEO Smithfield Foods is scheduled to testify before the Senate Agriculture Committee in Washington on July 10 regarding it's deal with Shuanghui International.
Nearly two dozen senators urged careful review of the Smithfield-Shuanghui deal stating issues on national security and increased foreign ownership of US foodmakers.