China's Shuanghui International Holdings (1241.HK) plans to launch a counterbid for Spanish meat processor Campofrio (CPF.MC), newspaper El Mundo said on Wednesday, citing sources close to a major financing deal for the Chinese group.
Campofrio, a household name in Spain whose products include hot dogs and canned ham, is the target of a 6.8 euros-per-share takeover offer from Mexican frozen food company Sigma AlimentosSGMAM.UL, valuing the company at 695 million euros ($943 million).
Shuanghui inherited a 37 percent stake in Campofrio when it bought U.S. pork producer Smithfield Foods for $4.7 billion earlier this year.
It said in September it planned to reduce the holding to less than 30 percent by December, below the threshold which would require it to make a full takeover bid under Spanish market rules, and giving it time to consider its options.
However, after signing an $8 billion credit line with the Bank of China on Wednesday to finance its international expansion, Spanish daily El Mundo said Shuanghui now plans to fight for control of Campofrio.
