Shuanghui Holdings reportedly not planning to increase its US$4.7B takeover offer of Smithfield Foods, which reaffirms recommendation for shareholders to approve offer; news comes after shareholder says deal undervalues company
June 18, 2013
– China’s Shuanghui International Holdings Ltd. is reportedly not planning to increase its US$4.7 billion takeover offer of meat producer Smithfield Foods Inc., Fox Business reported June 17.
The news comes after Smithfield shareholder Starboard Value said that Smithfield could receive as much as 62% more than the Shuanghui offer if it sold off its businesses in pieces.
Meanwhile, Smithfield released a statement on June 17 reaffirming its recommendation for shareholders to approve the Shuanghui offer, which represents a 31% premium on the company's closing price the day before the bid emerged.
The primary source of this article is Fox Business, New York, New York, on June 17, 2013.