Smithfield Investor Says $7B Sale Grossly Undervalues Co.

Law360, New York (June 24, 2013, 4:47 PM EDT) -- A Smithfield Foods Inc. shareholder hit the company and its executives with a putative class action in Virginia federal court Friday, arguing that a pending $7.1 billion sale to a Chinese meat company is undervalued and that shareholders were denied critical information about the transaction.

The complaint cites an estimate from another investor, Starboard Value LP, placing the value of the company at anywhere from $9 billion to $10.8 billion, and further argues that the proposed sale contains lofty bonus provisions for the company's executives. Smithfield...
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