I agree with your opinion and that of the NY paper. Smithfield management is not studid enough to buy IBP now. IBP has multiple lawsuits lodged against it, already has forcasted a projected earnings loss and fears problems with future beef sales due to the public's perception of potential mad cow disease. I believe something else is up as far as acquisitions go. The company has their eyes on larger Japanese sales due to the boycott of Danish pork (temporary)and possibly bigger sales to Walmart. Anyone got any ideas who they might buy?
I'm sorry guys but I don't agree. I read the times article and when I did my first thought was that SFD was not going to let IBP out of their dilema quickly or easily. They wanted this company too bad just a short while ago to not still be interested but they see an opportunity to buy them at a much better price than before. I know about all IBP's recent problems but who dosen't have problems today. At least IBP's skeletons are out of the closet and being accounted for. Bottom line is I like the deal. The price will be decidedly better ( perhaps $23 - $25 share) and SFD is higher now than before so there will be less dilution. I like what their doing .. let IBP flap in the breeze a bit, tell the world your looking elsewhere .. then buy the company for a song. All my opinion but it seems reasonable given all of the last few quarters activity.