USA: Smithfield comments on Tyson-IBP merger announcement
Joseph W. Luter, III, Chairman and Chief Executive Officer of Smithfield Foods, Inc. (NYSE: SFD), yesterday issued the following statement in response to the announcement by Tyson Foods that they have signed a definitive merger agreement to acquire IBP for $30 in cash and stock. ``After conducting our due diligence process, we made an offer Friday afternoon, followed by an increased offer Sunday, to acquire all of the outstanding shares of IBP for $32 per share in a tax-free stock-for-stock combination. That offer expired at noon today under its own terms. We received no response to the increased offer from the IBP Special Committee. We believe that our offer was a full and fair price for the company, but given the additional synergies we identified during the due diligence process, it was within the bounds of our commitment to only do transactions that will be accretive and therefore, add value to our shareholders. With our track record of successfully integrating acquisitions and creating shareholder value, we believed then -- as we believe now -- that our proposal was the best proposal for IBP shareholders. We are confident that over the next 12 months and beyond the IBP shareholders will, in hindsight, conclude that our offer would have created superior value.''
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