010348 Tyson: Too Early to Comment on IBP Deal StructureMarch 16, 2001Springdale, AR- Poultry giant Tyson Foods Inc. said it was too early to determine whether an ongoing federal accounting probe and downwardly revised earnings projections for acquisition target IBP Inc. would affect the companies' planned $3.2 billion merger. Tyson said in a short statement that while it was pleased with IBP's announcement that it had nearly resolved a U.S. Securities and Exchange Commission probe into the company's accounting practices, it would not make any decisions on the planned acquisition until other issues were resolved. “We are continuing our due diligence and are closely monitoring all factors related to IBP's business,” Tyson said. “It is still too early to determine what effect these issues will have on the transaction structure.” Specifically, Tyson noted the non-cash impairment charge related to the SEC probe has yet to be determined, and said it was “disappointed” with IBP's decision to lower first-quarter earnings estimates to about 12 cents per share. IBP did say that while its first-quarter earnings would be lower, its full year earnings should remain in line with previously given guidance.
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