Activist shareholder Starboard Value LP has told Smithfield shareholders it will vote against the company’s purchase by Shuanghai of China. Starboard is working with possible buyers to construct an all cash proposal from a single entity for acquisition of Smithfield. South Dakota Pork Producer Council’s Executive Director Glenn Muller says it’s important that whoever buys Smithfield is a business that is on solid financial grounds.
Muller says it doesn’t have to be a U.S. company that purchases Smithfield as long as they can ensure good export business.
Starboard officials believe that Smithfield would be worth more if it were broken up into three parts, U.S. pork production, hog farming, and international sales of fresh and packaged meats, and then sold.