010639 Senator Urges Tyson-IBP Antitrust ReviewJune 23, 2001Washington - A Democratic senator from South Dakota urged the Bush administration to review the expected merger of poultry giant Tyson Foods Inc. and meat processor IBP Inc., saying the deal would further reduce competition in the livestock market. Sen. Tim Johnson, whose state is home to IBP -- the United States' largest meat packer -- said allowing the merger would spur additional consolidation among other meat producers and processors. If completed, the Tyson-IBP deal would create the largest U.S. marketer of beef, pork and poultry, and would reduce the number of packers that sell meat to grocery stores, Johnson said in a statement. Tyson had tried to pull out of the January cash-and-stock deal, alleging breaches of the merger agreement and citing accounting irregularities in an IBP subsidiary. But a Delaware judge ruled on Friday that Tyson must uphold its agreement to buy IBP. The two companies are working to finalize a new deal this week. “Tyson's acquisition of IBP could allow it to control more of the meat sold through grocery stores than any other food company in America,” Johnson said. “I believe the Bush administration must quickly but carefully conduct another review.” Johnson estimated the merged Tyson-IBP would process 31% of beef in the United States, 33% of chicken and 18% of pork. The original deal would now be worth about $26 a share to IBP holders, or $2.76 billion, down from $30 a share and $3.2 billion when it was announced at the beginning of the year, analysts said, because of the decline in Tyson's stock price.
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