Tyson, IBP Agree to New Merger Deal
- Share via
Poultry giant Tyson Foods Inc. confirmed that it reached a new deal to acquire IBP Inc. for about $2.7 billion in cash and stock, nearly 16% less than its previous bid, creating the nation’s largest meat company.
Tyson said it will commence a tender offer for half of IBP’s outstanding shares for $30 each no later than July 5, to be completed by Sept. 1. Each of the remaining IBP shares will be exchanged for 2.381 Tyson shares, based on Tyson’s current stock price.
The deal is valued at about $500 million less than the original offer in January because of a decline in Tyson’s stock price.
The new agreement came about after a Delaware state judge ruled two weeks ago that Tyson could not back out of its offer to buy beef and pork processor IBP. Both companies, which agreed to the terms, had a deadline of Wednesday to reach agreement.
Tyson shares fell 4 cents to $8.85, and IBP rose $1.14 to $24.15, both on the NYSE.
Inside the business of entertainment
The Wide Shot brings you news, analysis and insights on everything from streaming wars to production — and what it all means for the future.
You may occasionally receive promotional content from the Los Angeles Times.
