0103111 IBP Says Tyson Had No Basis to End Merger

Dakota Dunes, SD - IBP Inc. said that poultry giant Tyson Foods Inc.'s withdrawal of a buyout offer for IBP came as a surprise and that Tyson has no basis to end the deal.

“We are shocked by Tyson's announcement. This comes as a complete surprise,” said IBP in its statement. “As recently as this week, our sense was that Tyson had every intention of going through with the transaction.”

Dakota Dunes, SD-based IBP, which Tyson won the rights to buy after a bidding war with pork processor Smithfield Foods Inc., added that it does not believe Tyson “has any valid basis to discontinue or terminate the merger agreement between the two companies.”

Tyson withdrew its bid after a federal probe into IBP's accounting practices and the discovery of alleged mismanagement and account irregularities at the company's Chicago-based appetizer subsidiary.

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