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$SFD Shareholders Pursue Breakup of Company Rather Than Outright Sell to China

“(Reuters) – Starboard Value LP, a large shareholder in Smithfield Foods Inc , urged the world’s largest pork producer to explore a breakup rather than go ahead with a planned $4.7 billion takeover by Chinese meat company Shuanghui International.

The activist shareholder, which disclosed a 5.7 percent stake in the company on Monday, said Smithfield might be worth “well in excess” of the $34 per share offered by Shuanghui if it split into hog production, pork and international units and shopped the businesses separately.

Starboard said in a letter dated June 17 to Smithfield’s board its sum-of-the-parts valuation was between $44 and $55 per share.

Officials from Smithfield and Shuanghui were not immediately available to comment….”

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