Shareholder plans to vote against Smithfield sale

RICHMOND, Va. — One of Smithfield Foods’ largest shareholders says it plans to vote against the pork producer’s proposed takeover by a Chinese company.

New York-based investment firm Starboard Value LP sent a letter to Smithfield’ shareholders on Tuesday saying it intends to vote against the deal struck with Shuanghui International Holdings Ltd.

Smithfield Foods Inc. has scheduled a Sept. 24 shareholders meeting in Richmond to vote on the takeover.

It would be the largest takeover of a U.S. company by a Chinese firm, valued at about $7.1 billion including debt. Under the deal, the Smithfield, Va.-based company will sell itself for $34 per share, or $4.7 billion.

Starboard, which owns about 5.7 percent of Smithfield’s common stock, says it wants more time to seek other proposals that would offer greater shareholder value.