IBP, inc. (NYSE:IBP) yesterday issued the following statement in reaction to Tyson Foods’ (NYSE:TSN) announcement that it had discontinued its agreement with IBP:
“We are shocked by Tyson’s announcement. This comes as a complete surprise. As recently as this week, our sense was that Tyson had every intention of going through with the transaction.
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We do not believe Tyson has any valid basis to discontinue or terminate the merger agreement between the two companies. As previously reported, IBP has resolved the SEC issues, which Tyson cites, without any material impact on our financial statements. As we have also stated, Tyson was aware of the potential for additional write-downs at IBP’s DFG Foods unit before the merger agreement was signed. DFG is a small operation and is essentially immaterial to IBP’s overall finances.
We have not yet seen the legal complaint Tyson has reportedly filed in Arkansas and so we cannot comment on its content. However, we can tell you we at IBP will take all appropriate steps to protect the rights of our company and our shareholders.”
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