P.S.F. shareholders vote in favor of Smithfield merger
February 23, 2007
by FoodBusinessNews.net Staff
KANSAS CITY — Nearly six months after Smithfield Foods, Inc. officials announced plans to acquire Premium Standard Farms, Inc., stockholders of P.S.F. voted in favor of the merger during a specially called meeting held earlier today.
As a result of the deal, which still looms pending the government’s anti-trust investigation and approval, P.S.F. will become a wholly owned subsidiary of Smithfield and each outstanding share of P.S.F. common stock will be converted into the right to receive 0.678 of a share of Smithfield common stock and $1.25 in cash. In some cases, Smithfield may substitute up to $1 in cash for a portion of the stock consideration having an equivalent value.
Interests representing 86.2% of the outstanding shares entitled to vote voted in favor of adoption of the merger agreement. Once the deal receives the blessing of government officials and all other closing conditions are met, the deal is expected to be made official by the second quarter of 2007.