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If you purchased shares of Smithfield Foods, Inc. (NYSE:SFD) prior to May 29, 2013, and currently hold any of those NYSE:SFD shares, you have certain options and you should contact the Shareholders Foundation, Inc.
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To have your information reviewed for options and to receive notifications about this investigation, please send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.
Investigation Overview
May 29, 2013 (Shareholders Foundation) - An investigation on behalf of investors in Smithfield Foods, Inc. (NYSE:SFD) shares was announced concerning whether the offer by Shuanghui International Holdings Limited to acquire Smithfield Foods, Inc. for $34.00 per NYSE:SFD share and the takeover process are unfair to investors in Smithfield Foods shares.
The investigation by a law firm concerns whether certain officers and directors of Smithfield Foods, Inc. breached their fiduciary duties owed to NYSE:SFD investors in connection with the proposed acquisition.
On May 29, 2013, Smithfield Foods, Inc. and Shuanghui International Holdings Limited announced that they have entered into a merger agreement that values Smithfield Foods, Inc at approximately US$7.1 billion, including the assumption of Smithfield's net debt. Under the terms of the agreement Shuanghui International Holdings Limited will acquire all of the outstanding shares of Smithfield Foods, Inc. for US$34.00 per share in cash.
However, given that at least one analyst has set the high target price for NYSE:SFD shares at $48.00 per share, the investigation a law firm concerns whether the offer is too low for NYSE:SFD stockholders. More specifically, the investigation focuses on whether the Smithfield Foods Board of Directors undertook an adequate sales process, adequately shopped the company before entering into the transaction, maximized shareholder value by negotiating the best price, and acted in the shareholders' best interests in connection with the proposed sale.
Smithfield Foods, Inc. reported that its Total Revenue rose from over $11.2 billion for the 52 weeks period that ended on May 2, 2010 to over $13.09 billion for the 52 weeks period that ended on April 29, 2012 and that its Net Loss of $101.40 million for the 52 weeks period that ended on May 2, 2010 turned into a Net Income of $361.30 million for the 52 weeks period that ended on April 29, 2012.
Shares of Smithfield Foods, Inc. (NYSE:SFD) grew from $5.93 per share in March 2009 to as high as $26.85 per share in March 2013.
On May 29, 2013, NYSE:SFD shares closed at $33.35 per share.
