010102 Smithfield Comments On Tyson-IBP AnnouncementJanuary 4, 2001Smithfield, VA - Joseph W. Luter, III, Chairman and Chief Executive Officer of Smithfield Foods, Inc., issued the following statement in response to the announcement by Tyson Foods that they have signed a definitive merger agreement to acquire IBP for $30 in cash and stock. “After conducting our due diligence process, we made an offer, followed by an increased offer, to acquire all of the outstanding shares of IBP for $32 per share in a tax-free stock-for-stock combination. That offer expired under its own terms. We received no response to the increased offer from the IBP Special Committee. We believe that our offer was a full and fair price for the company, but given the additional synergies we identified during the due diligence process, it was within the bounds of our commitment to only do transactions that will be accretive and therefore, add value to our shareholders. With our track record of successfully integrating acquisitions and creating shareholder value, we believed then -- as we believe now -- that our proposal was the best proposal for IBP shareholders. We are confident that over the next 12 months and beyond the IBP shareholders will, in hindsight, conclude that our offer would have created superior value.” With annual sales of $5.2 billion, Smithfield Foods is the leading producer and marketer of fresh pork and processed meats in the United States. Smithfield Foods has a proven track record of creating shareholder value and successfully closing and integrating acquisitions. Since 1990, the company has completed 11 acquisitions, all of which have been successfully integrated into the company's strategy and operations. The company was ranked the number one Fortune 500 food stock in total return to investors, and placed in the top 15th percentile in total return to investors among all Fortune 500 companies, over the past 10 years.
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