This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Smithfield Foods Receives $7B Buyout Offer: Ahead of the Ticker

NEW YORK ( TheStreet) -- Smithfield Foods (SFD) received a buyout offer from Chinese meat producer Shanghui International for $4.7 billion in cash.

The total value of the deal comes to about $7 billion, as Shuanghui said it will also assume Smithfield's debt. The $34-a-share offer price represents a 31% premium to Smithfield's closing share price on Tuesday.

Shuangui, which is China's largest pork producer, said the acquisition would allow it to supply more pork to China that meets food safety standards. In the midst of food safety scandals in the country, Shanghui itself was the subject of allegations that it used an illegal additive on its livestock.

China is the third-largest market for U.S. pork.

The acquisition is subject to regulatory approval. It is expected to close in the second half of the year.

Sprint Nextel (S) and Japan's SoftBank have received national security clearance from regulators regarding SoftBank's proposed $20.1 billion stake in the cell phone carrier.

Sprint and SoftBank said that after clearance from the Treasury Department's Committee on Foreign Investment in the United States, they've entered into a national security agreement with the U.S. government. If the two companies do combine, as part of the agreement the U.S. government will be able to veto any equipment purchases by Sprint from new vendors, according to The Wall Street Journal.

The companies said they expect the Department of Justice and the Department of Homeland Security to notify the Federal Communications commission that they've completed their national security review. Upon notification, the FCC can finish its review of the deal.

Last week, Senator Charles Schumer expressed concern that the deal could expose U.S. government agencies and companies to Chinese cyber attacks. He asked regulators to "use extreme caution" when reviewing the proposal.

SoftBank has offered to buy a 70% stake in Sprint for $20.1 billion. Dish Network (DISH - Get Report) has launched a competing $25.5 billion offer for Sprint as a whole. Dish claims that the cyber attack issue is another reason why Sprint shareholders should consider its bid.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SFD $0.00 0.00%
AAPL $127.60 0.00%
DISH $69.22 0.00%
S $4.99 0.00%
FB $83.09 0.00%


DOW 18,034.93 +208.63 1.17%
S&P 500 2,100.40 +19.22 0.92%
NASDAQ 4,994.6020 +62.7870 1.27%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs