001241 Tyson Meets Investors On IBP BidDecember 16, 2000New York - Top executives of poultry giant Tyson Foods Inc.dined on steak with investors they sought to promote a $2.57 billion takeover bid for top beef processor IBP Inc. People who attended the meeting, which was closed to reporters, said Tyson shed little light on potential changes to its cash and stock bid. Many Wall Street experts expect Tyson to ultimately raise or restructure its offer. Instead, the company reiterated how the deal would leverage its position with retailers, they said. If it wins IBP, Tyson would be the world's largest supplier of chicken, beef and pork. About 60 people attended the meeting, they said. Tyson issued a statement on Thursday evening to say it had filed with government regulators for antitrust approval. “We expect this acquisition to be immediately and significantly accretive to our earnings,” chief executive John Tyson said in a statement. Springdale, Ark.-based Tyson earlier this week launched a $26 tender offer for 50.1% of IBP's shares. It is offering to buy the rest of the company in stock valued at $23.33 a share based on Tyson's current stock price. IBP already has a friendly $2.4 billion pact with DLJ Merchant Banking Partners, an equity fund affiliated with Donaldson, Lufkin & Jenrette, now owned by CS First Boston. Although the DLJ-IBP transaction is formally intact, it is expected to be terminated in favor of an IBP agreement with either Smithfield or Tyson. Both of those companies are conducting due diligence on IBP. Smithfield's offer is worth $25 in stock, or $2.7 billion. The offers also call for the assumption of $1.4 billion in IBP debt.
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