A majority shareholder is pressuring Smithfield Foods, Inc. (NYSE:SFD) to explore a breakup rather than go ahead with a planned USD 4.7 billion takeover by Chinese meat company.
Activist investor Starboard Value LP said in a letter to the Smithfield board that it has taken a 5.7% stake in the world's largest meat company as one of the biggest shareholders and urges the company to consider a breakup.
Starboard proposed division of Smithfield into U.S. pork production, hog farming and international sales of fresh and packaged meats for a sale that will value the meat processor higher.
Starboard says a broken-up Smithfield could be worth USD 44-55 per share, compared with the USD 34 per share price offered by Shuanghui International Holdings, Ltd.
