Starboard Value LP, a shareholder of Smithfield Foods Inc. (SFD) with beneficial ownership of approximately 5.7% of the outstanding common stock of the company, announced that it has delivered a letter to the Board of Smithfield. Starboard believes the proposed merger of Smithfield and Shuanghui International Holdings Limited still significantly understates a conservative sum-of-the-parts valuation of Smithfield, which it estimates to be worth between $9 billion and $10.8 billion after tax, or approximately $44 to $55 per share.
Starboard is seeking to identify and connect any strategic or financial buyers for Smithfield's individual business units to determine if it would be possible to structure a sum-of-the-parts transaction that could deliver greater value for shareholders than the proposed merger. Starboard expects that its efforts will lead to the submission of a superior proposal under the terms of the merger agreement.
For comments and feedback: editorial@rttnews.com