* Smithfield drops 9.50 euros/shr offer for Campofrio
* Cites poor economy, share price decline
MADRID, June 3 (Reuters) - Spanish meat producer Campofrio (CPF.MC) said on Friday that U.S. pork producer Smithfield Foods (SFD.N) had dropped its 500 million euro ($721.4 million) offer to increase its stake in the Spanish company because of adverse economic conditions.
Smithfield, along with Chairman Pedro Ballve, were to offer 9.50 euros per share to raise the US firm's stake in Campofrio to about 88 percent and delist the company, leaving the remaining shares in the hands of the family of the chairman. [ID:nN06228813]
"The decision .. to end talks has been influenced, amongst other factors, by adverse economic conditions in Europe, with few signs of improvement and by the recent fall in Smithfield shares making it difficult to finance the deal in a non-dilutive way," a statement said.
However, the US group will maintain its 37 percent stake and continue to support the Spanish company's growth, as well as synergies.
Shares in Campofrio, suspended prior to the statement, will reopen from 0800 GMT, the stock market commission said. (Reporting by Elisabeth O'Leary. Editing by Jane Merriman)
* Smithfield drops 9.50 euros/shr offer for Campofrio
* Cites poor economy, share price decline
MADRID, June 3 (Reuters) - Spanish meat producer Campofrio (CPF.MC) said on Friday that U.S. pork producer Smithfield Foods (SFD.N) had dropped its 500 million euro ($721.4 million) offer to increase its stake in the Spanish company because of adverse economic conditions.
Smithfield, along with Chairman Pedro Ballve, were to offer 9.50 euros per share to raise the US firm's stake in Campofrio to about 88 percent and delist the company, leaving the remaining shares in the hands of the family of the chairman. [ID:nN06228813]
"The decision .. to end talks has been influenced, amongst other factors, by adverse economic conditions in Europe, with few signs of improvement and by the recent fall in Smithfield shares making it difficult to finance the deal in a non-dilutive way," a statement said.
However, the US group will maintain its 37 percent stake and continue to support the Spanish company's growth, as well as synergies.
Shares in Campofrio, suspended prior to the statement, will reopen from 0800 GMT, the stock market commission said. (Reporting by Elisabeth O'Leary. Editing by Jane Merriman)
* Smithfield drops 9.50 euros/shr offer for Campofrio
* Cites poor economy, share price decline
MADRID, June 3 (Reuters) - Spanish meat producer Campofrio (CPF.MC) said on Friday that U.S. pork producer Smithfield Foods (SFD.N) had dropped its 500 million euro ($721.4 million) offer to increase its stake in the Spanish company because of adverse economic conditions.
Smithfield, along with Chairman Pedro Ballve, were to offer 9.50 euros per share to raise the US firm's stake in Campofrio to about 88 percent and delist the company, leaving the remaining shares in the hands of the family of the chairman. [ID:nN06228813]
"The decision .. to end talks has been influenced, amongst other factors, by adverse economic conditions in Europe, with few signs of improvement and by the recent fall in Smithfield shares making it difficult to finance the deal in a non-dilutive way," a statement said.
However, the US group will maintain its 37 percent stake and continue to support the Spanish company's growth, as well as synergies.
Shares in Campofrio, suspended prior to the statement, will reopen from 0800 GMT, the stock market commission said. (Reporting by Elisabeth O'Leary. Editing by Jane Merriman)
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