Hedge-fund activist Jeff Smith, looking to stop the largest Chinese takeover of a US company, said he’s making progress toward a meatier bid for pork producer Smithfield Foods than the $34 a share being offered by Shanghui International.
In a letter to Smithfield shareholders yesterday, Smith, the head of $1 billion Starboard Value, said he has received “non-binding written indications of interest from third parties,” hinting at “a price substantially in excess” of Shuanghui’s $7.1 billion offer.
Smith said he plans to vote Starboard’s 5.7 percent stake in Smithfield against the deal and wants to postpone the Sept. 24 shareholder meeting.
Meanwhile, Shanghui yesterday said that it has entered into agreements with a number of financial institutions for roughly $4 billion in financing, which it expects to close by Dec. 31.