010855 IBP Scraps Dividend Due to Tyson Acquisition

Dakota Dunes, SD - Beef and pork processor IBP Inc. said it would not issue a third-quarter dividend to shareholders due to its pending acquisition by poultry giant Tyson Foods Inc.

Tyson expects to close the $2.9 billion acquisition of IBP on Sept. 28. The deal will create the world's largest meat company with annual revenue of about $25.7 billion.

IBP has issued a 2.5-cent a share quarterly dividend for the past several years and will become a wholly owned subsidiary of Tyson when the acquisition closes. A shareholder vote on the merger is set for Sept. 28, but Tyson already controls a majority of the IBP stock, ensuring approval.

Tyson bought 50.1 percent of the outstanding IBP shares in a cash tender offer completed earlier in August. The remaining IBP shares will be converted into Tyson shares based on the average of Tyson's closing stock price for the 15 trading days beginning on Friday.

Earlier in August, Tyson's board of directors declared a quarterly dividend of 4 cents a share on Class A stock and 3.6 cents a share on Class B stock payable on Dec. 15 to shareholders of record at the close of business on Dec. 1.

RETURN TO HOME PAGE

E-mail: sflanagan@sprintmail.com