001274 Tyson Foods Ups Offer for IBPDecember 30, 2000Springdale, AR - Tyson Foods Inc. has raised its offer to acquire IBP Inc. by about 4% in the nation's largest poultry producer's latest bid to take control of the beef and pork producer. IBP said it is considering the offer, but declined further comment. Tyson increased its offer late Thursday from $26 per share to $27 per share, or about $2.9 billion, with half to be paid in cash and the other half in Tyson common stock. The news pushed IBP shares up 81.2 cents, or 3%, to close at $26.75 Friday on the New York Stock Exchange. Tyson and Smithfield Foods Inc. of Virginia are locked in a battle as each seeks to gain control of IBP, based in Dakota Dunes, SD Smithfield, the world's largest hog producer and processor, made an offer Nov. 12 to purchase IBP for $25 a share in stock. John Tyson, president, chairman and CEO of Tyson Foods said his proposal is best for IBP's shareholders. “We remain the best bidder, with the best terms -- representing a premium of 8% over Smithfield's offer -- and in the best position to close quickly.” Tyson said his company was “prepared to take all actions necessary to gain antitrust approval due to the company's confidence that it can address limited regulatory concerns.” That confidence, he said, was based on discussions with the federal Justice Department. Tyson also agreed to pay a $70 million breakup fee to IBP if the deal falls through “because of constraints imposed by the antitrust authorities.” Tyson's offer also includes a form of protection, known as a collar, that says Tyson stock must remain within a range of $12.60 to $15.40.
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