Wait for Board Decision, IBP Asks Investors

IBP Inc., the largest U.S. beef processor, urged shareholders to hold their decision on a tender offer by No. 1 U.S. chicken producer Tyson Foods Inc. until IBP’s board makes a recommendation. Tyson said it started the tender offer as part of a proposal to buy IBP for $2.8 billion, even though it has not yet reached a deal with the IBP committee examining bids. Tyson said it was starting the offer to speed review of its bid by regulators. The move could force rival bidder Smithfield Foods Inc.’s hand in bidding that began more than two months ago when an investor group that included IBP management proposed a $2.4-billion buyout. Tyson said it will offer shareholders $26 a share for up to 50.1% of the outstanding stock of the Dakota Dunes, S.D.-based company. On the NYSE, Springfield, Ark.-based Tyson’s stock fell 50 cents to close at $11.75, while IBP closed off 38 cents at $25.50, and Smithfield closed off 50 cents at $29.70.