020854 ConAgra Foods to Sell Meatpacking Arm

Omaha, NE - (AP) - An investment group plans to complete its $1.4 billion purchase of ConAgra Foods' meatpacking division next month.

ConAgra Foods said that Hicks, Muse, Tate and Furst Inc. of Dallas and Booth Creek Management Inc. of Vail, Colo., will close the deal in September, buying a majority interest in ConAgra's fresh meat business.

The deal was supposed to be completed in August, but was delayed when ConAgra Beef had nearly 19 million pounds of ground beef recalled because of E. coli contamination at its plant in Greeley, Colo.

It was the nation's second-largest ground beef recall. Officials believe at least 38 people became ill after eating beef that originated from the plant.

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