NEW YORK ( TheStreet) -- Starboard Value LP, owner of 5.7% stake in Smithfield Foods ( SFD)on Monday urged the hog producer to reconsider its pending $7.1 billion cash and assumed debt sale to Shuanghui International Holdings Ltd., arguing the company's shareholders would be better served if the target sold itself in pieces. New York-based Starboard LP, in a letter to management said the company could be worth as much as $55 per share in a breakup, a significant premium to the company's $34 per share deal with Shuanghui.
"We would be remiss ... to let an opportunity slip by to determine whether the company could realize even greater value for shareholders," Smith wrote. "We believe our involvement will be welcomed and supported by the numerous Smithfield investors who, like us, recognize the additional value that the company's assets have over and above the current offer." Written by Lou Whiteman in New York