Shareholder Rights Law Firm Johnson & Weaver, LLP Announces Investigation of the Smithfield Foods (large U.S. employer) Proposed Acquisition by Shuanghui International Holdings Ltd.
SAN DIEGO--(BUSINESS WIRE)-- Shareholder Rights Law Firm Johnson & Weaver, LLP is investigating whether members of the board of directors of Smithfield Foods (NYS: SFD) breached their fiduciary duties in connection with the proposed acquisition by Chinese meat processor Shuanghui International.
On May 29, 2013, Shuanghui International Ltd. announced that it had entered into a definitive merger agreement to acquire all outstanding shares of Smithfield Foods for $34.00 per share. Smithfield Foods, Inc. was founded in 1961 and is headquartered in Smithfield, Virginia and hires over 46,000 full time employees.
The investigation will determine whether the board of directors breached their fiduciary duties to stockholders by failing to satisfactorily shop the company before entering into this agreement. Jim Baker, lead analyst for Johnson & Weaver, stated that, "Shuanghui International's offer appears to be inadequate and not in the best interest of Smithfield Foods shareholders." Baker noted that Smithfield Foods is trading at a low multiple relative to this year's expected earnings. Additionally, one analyst has a target price of $48.00, greater than the $34.00 buyout price.
If you are a Smithfield Foods shareholder and are interested in learning more about the investigation or your legal rights and remedies, please contact lead analyst Jim Baker (firstname.lastname@example.org) at 619-230-0063.
Johnson & Weaver, LLP is a nationally recognized shareholders' rights law firm. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits. For more information about the firm and its attorneys, please visit http://www.johnsonandweaver.com.
Johnson & Weaver, LLP
Jim Baker, 619-230-0063 Ext. 118
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The article Shareholder Rights Law Firm Johnson & Weaver, LLP Announces Investigation of the Smithfield Foods (large U.S. employer) Proposed Acquisition by Shuanghui International Holdings Ltd. originally appeared on Fool.com.
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