This board is idiotic. SFD hedge fund investor Jeffrey Smith is trying to break up the company to raise the value of this deal by $10 or $15 a share, and the only post is, "Pork is nasty." Or, "Chinese are not stupid." Folks, if you have no idea why you are in this stock, go somewhere else.
elstock - I didn't mean to impugn the validity of your post - I wrote my rant too quickly and I did it because no one seems to be discussing this stock in terms of its worth. I don't think the Chinese will break up Smithfield if they get it, because they NEED all three components of the business to satisfy Chinese demand. On a non-financial note, I am absolutely against selling a core food company to China, or to any other country for that matter. The US should have a policy that no food and agriculture, energy and utilities, or high-tech company involved in cyber security can be sold to an overseas company. What if China bought up all of our farms? Cattle ranches? What do you think is going to happen to the price of pork in the US? So that's the other reason I hope that Starboard succeeds in breaking up Smithfield - it's the lesser of two evils.
I'm not trying to be wise, or even an #$%$. I'm just trying to keep the conversation relevant. To answer your question, I'm in this because I do believe a higher bid will emerge in the next three to four weeks, that will be in the range of $42-$55 a share, if you add up the components of a breakup. That will either cause the Chinese company to drop out, or they will raise their bid to match this one, or perhaps close enough for the Smithfield board to still sell it to them.
No, I don't work for Smithfield. I just like Starboard's activism.
Personally, I don't particularly like the idea of the Chinese using hundreds of US pig farms as the base of their new Chinese Intelligence Agency in the US. Why wouldn't that happen?