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updated: 9/3/2013 10:04 AM

Shareholder plans to vote against Smithfield sale

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Associated Press

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.

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