The Wall Street Journal reported on Sunday evening, a major fund investor of the largest U.S. pork producer Smithfield hope the company implement spin-off agreement, instead of selling company to Chinese pork producer Shuanghui International.The fund investor, which called Starboard Value LP, owns a 5.7 percent stake in Smithfield making it one of the processor's larger investors.
In May, Hong Kong-based Shuanghui International, a majority shareholder of China’s largest meat-processing enterprise, proposed acquiring Smithfield, Va.-based Smithfield Foods for approximately $7.1 billion, including assumption of debt. Shuanghui will acquire all of Smithfield’s outstanding shares for $34 per share in cash, which is a 31 percent premium to Smithfield’s closing stock price of $25.97 on May 28.
In a letter to the Smithfield board, Jeffrey Smith, CEO of Starboard Value LP, argued that the company would be worth more if it were divided and sold as three parts — pork production, hog farming and sales of fresh and packaged meats.
The Wall Street Journal reported that Starboard Value LP Fund will submit the letter on Monday.
