Smithfield Expected to Raise Bid for IBP

Pork producer Smithfield Foods Inc. is expected to improve its offer for IBP Inc., as a deadline looms in its battle with Tyson Inc. for control of the beef-processing company, analysts said. Tyson, the largest U.S. poultry producer, raised its bid for IBP late Thursday by $1 to $27 a share in cash and stock, valuing Dakota Dunes, S.D.-based IBP at $2.9 billion. Smithfield, Va.-based Smithfield has offered $25 a share in stock and has been expected to raise the bid. A Smithfield spokesman could not comment on a potential new bid. Analysts said a new Smithfield bid might also include a cash component. Tyson’s bid is half cash, half stock. Analysts and investors said IBP has set a deadline of today for submitting bids for the company. An IBP spokesman could not confirm this, and a representative of the special committee of IBP directors considering the bids could not be reached. Shares of Springdale, Ark.-based Tyson closed unchanged at $12.75, IBP closed up 81 cents at $26.75, and Smithfield closed off 45 cents at $30.40, all on the New York Stock Exchange.