Judge Says IBP Suit Against Tyson Can Proceed

A judge in Delaware ruled that meatpacker IBP Inc.’s lawsuit against poultry giant Tyson Foods Inc. can go forward. In a 28-page ruling, Judge Leo E. Strine denied Tyson’s motion to dismiss the case and its argument that issues IBP presented could be handled in a separate lawsuit by Tyson against IBP in Washington County, Ark. Dakota Dunes, S.D.-based IBP filed its lawsuit March 30 to force Springdale, Ark.-based Tyson to complete its planned $3.2-billion purchase of the company, plus assumption of $1.5 billion in IBP debt. The suit in Chancery Court in New Castle County, Del., came a day after Tyson nixed the deal. The case is to go to trial May 14. Tyson’s Class A shares rose 7 cents to close at $13.60, while IBP rose 49 cents to close at $15.25, both on the NYSE.