Starboard fails to find alternative suitor for Smithfield, will vote for Chinese bid

Smithfield Foods Inc.’s largest shareholder says it will vote in favour of a proposed takeover by a Chinese meat producer after failing to find an alternative bidder.

Starboard Value LP said Friday that it believes another bidder could have offered shareholders a better deal but it could not secure an offer under existing time and financial constraints.

Unless another proposal emerges, Starboard plans on voting in favour of the $34-per-share offer for Smithfield made by China’s Shuanghui International Holdings Ltd.

Starboard said earlier this month that it would vote against the $4.7 billion deal because it wanted more time to seek other offers that would provide better shareholder value.

The New York-based investment firm owns about 5.7 per cent of Smithfield’s common stock.

Smithfield shares fell 20 cents to $33.97 in morning trading.