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News Summary: Smithfield shareholder concedes

The Associated Press

SHAREHOLDER SURPRISE: Smithfield Foods Inc.'s largest shareholder, Starboard Value LP, said Friday that it will vote in favor of a proposed takeover by a Chinese meat producer after failing to find an alternative bidder.

WHY NOW: Starboard said earlier this month that that it would vote against Shuanghui International Holdings Ltd.'s $34 per share offer, because it wanted more time to seek alternatives that would provide better shareholder value. But it could not secure an offer under existing time and financial constraints.

THE VOTE: Unless another proposal emerges, Starboard plans on voting in favor of Shuanghui's $4.7 billion offer. The vote is scheduled for Tuesday. Starboard owns about 5.7 percent of Smithfield's common stock.