Shuanghui To Pare Campofrio Stake To Avoid Forced Buyout

Law360, New York (September 27, 2013, 3:15 PM EDT) -- Shuanghui International Holdings Ltd. said Friday that it will cut its stake in a Spanish food company  inherited in its recent $7.1 billion acquisition Smithfield Foods Inc., hoping to avoid being forced under Spanish law to buy the entire company.

Shuanghui owns 37 percent of Campofrio Foods SA, Spain's biggest meat processor. Spanish securities law requires holders of more than 30 percent to make an offer within three months to buy out remaining stockholders. Assuming a premium similar to the one Shuanghui paid for Smithfield, such...
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