Smithfield Acquisition of PSF Approved
May 9, 2007 —
The Justice Department's antitrust division has approved Smithfield Foods Inc.'s acquisition of Premium Standard Farms Inc.
Under the agreement, each PSF share has been converted into 0.678 Smithfield shares plus $1.25 in cash. The total combined value of stock and cash to be received by PSF shareholders was $22.13 per PSF share, based on the closing price of Smithfield shares on the New York Stock Exchange last Friday, which was $30.79. The purchase price was approximately $800 million, including the assumption of PSF's approximately $125 million of net debt.
Exactly what the combined organization will look like has not yet been determined by Smithfield officials.
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