Premium Standard Farms holders OK buyout |
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Fri, 23 Feb 2007 20:12
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KANSAS CITY, Mo. (AP) - Pork producer Premium Standard Farms Inc. said Friday its shareholders have approved Smithfield Foods Inc.'s acquisition of the company for $671 million in stock and cash.Smithfield will also assume about $117 million of Premium Standard's debt as part of the deal.Under terms of the agreement, each Premium Standard share will be converted into the right to receive 0.678 Smithfield shares plus $1.25 in cash. That works out to about $20.99 per Premium Standard share based on Smithfield's closing price of $29.11 on Thursday.Premium Standard, the third largest pork producer in the United States, will become a wholly-owned subsidiary of Smithfield as a result of the transaction. Smithfield processes pork and other meats, including beef and turkey, and makes bacon, sausage, hot dogs and luncheon meats.The closing of the acquisition remains subject to government approvals, Premium Standard said.Shares of Premium Standard dropped 20 cents to $20.60 in afternoon trading on the Nasdaq Stock Market, while Smithfield shares fell 11 cents to $29 on the New York Stock Exchange.Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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Smithfield Foods answers DOJ query 