Arab Today, arab today key investor pushes for smithfield breakup
Last Updated : GMT 17:50:45
Arab Today, arab today
Arab Today, arab today

Key investor pushes for Smithfield breakup

Arab Today, arab today

Arab Today, arab today Key investor pushes for Smithfield breakup

Washington - AFP

A large shareholder of global pork giant Smithfield Foods called Monday for the company to be broken up rather than sold to a major Chinese meat processor, in order to maximize its value. The move potentially throws a spanner into Shuanghui International\'s push to lock in a strong supply of pork by taking over Smithfield, the world\'s largest hog farmer. Investment group Starboard Value, which holds a 5.7 percent stake in the US farm-to-supermarket meat company, said that Shuanghui\'s $4.7 billion, $34-a-share offer last month deeply undervalues Smithfield. Including debt, the bid by Shuanghui -- which controls China\'s largest pork processor -- values Smithfield at $7.1 billion. But the breakup value for the US icon is between $9 billion and $10.8 billion, or $44-$55 a share, Starboard argued in a letter to the Smithfield board of directors Monday. \"We believe the proposed merger still significantly understates a conservative sum-of-the-parts valuation of the company,\" Starboard said. Starboard said that Smithfield\'s Hog Production, International, and Pork divisions could easily be split to unlock higher value for shareholders without excessive tax costs. Prior to Shuanghui\'s bid announced May 29, Starboard said it believed that there were several possible buyers for each unit. \"We believe there are numerous interested parties for each of the company\'s operating divisions, and that a piece-by-piece sale of the company\'s businesses could result in greater value to the company\'s shareholders than the proposed merger,\" it said. While Smithfield is forbidden by its agreement with Shuanghui from seeking higher bids for the company, Starboard said it was possible to redesign the bid to include selling off parts of the company to other buyers. \"We look forward to determining whether there are potential interested parties who could facilitate a sum-of-the-parts transaction structure that could deliver even greater value for shareholders than the proposed merger at this time.\" Shuanghui and Smithfield were both quiet on Starboard\'s statement. At midday Smithfield shares were up 0.7 percent at $33.03 on the New York Stock Exchange.

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today key investor pushes for smithfield breakup Arab Today, arab today key investor pushes for smithfield breakup

 



Arab Today, arab today
Arab Today, arab today Mohamed Bahari prepares new collection for spring 2017

GMT 06:15 2017 Monday ,27 February

Mohamed Bahari prepares new collection for spring 2017
Arab Today, arab today As Olympics loom,China plunges into biz

GMT 10:08 2017 Tuesday ,28 February

As Olympics loom,China plunges into biz
Arab Today, arab today Sheds light on major steps in 12-year career

GMT 06:07 2017 Monday ,27 February

Sheds light on major steps in 12-year career
Arab Today, arab today UN envoy sets out framework

GMT 07:25 2017 Monday ,27 February

UN envoy sets out framework
Arab Today, arab today Kalam Nawaem made a difference in social issues

GMT 06:43 2017 Tuesday ,28 February

Kalam Nawaem made a difference in social issues

GMT 05:34 2017 Monday ,27 February

Brexit sows seeds of doubt for British farmers

GMT 06:38 2017 Sunday ,26 February

US rig count increases

GMT 06:01 2017 Sunday ,26 February

BRIC funds see inflows amid emerging equity boom

GMT 05:43 2017 Sunday ,26 February

Al-Gergawi quits Dubai Holding to focus on govt role

GMT 05:14 2017 Sunday ,26 February

Oil prices to average $50-$70 through 2022

GMT 14:44 2017 Saturday ,25 February

China overtakes US as Germany’s top trade partner
View News in Arabic - Business: نفط وبتروكيماويات
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Parliament considers solutions to overpopulation

GMT 20:27 2017 Monday ,27 February

Parliament considers solutions to overpopulation
Arab Today, arab today Humans spark most US wildfires

GMT 14:58 2017 Tuesday ,28 February

Humans spark most US wildfires
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today Final Phantom VII signals end of an era

GMT 14:31 2017 Tuesday ,28 February

Final Phantom VII signals end of an era
Arab Today, arab today 'Constructive' Vauxhall talk with union

GMT 08:54 2017 Saturday ,25 February

'Constructive' Vauxhall talk with union
Arab Today, arab today Aspires present the story of Egypt’s first president

GMT 06:18 2017 Sunday ,26 February

Aspires present the story of Egypt’s first president
Arab Today, arab today Penguins in the age of dinos

GMT 11:44 2017 Saturday ,25 February

Penguins in the age of dinos

GMT 06:42 2017 Saturday ,25 February

Reasons for the delay 'On the Stairs of Servants'

GMT 05:14 2017 Thursday ,23 February

UK appoints 1st Scotland Yard chief in 188 years

GMT 18:23 2017 Friday ,24 February

Fadi explains secrets of  Nancy Ajram's newlook

GMT 12:16 2017 Thursday ,23 February

Ex-yoga missionary unleashes rage

GMT 19:45 2017 Monday ,20 February

Sarah Belamesh designs antiques of "ceramic"

GMT 10:51 2017 Saturday ,25 February

Pigs with edited genes show resistance

GMT 18:28 2017 Saturday ,25 February

Tourist guide explains types of tourism

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 06:28 2017 Tuesday ,28 February

Dumbphones survive rise of the smartphone

GMT 22:42 2017 Thursday ,23 February

Nasima Gamei revives heritage in jewelries
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday