Dive Brief:
- WH Group, the company which spent $4.9 billion last year to take control of Smithfield Foods, had to dramatically alter the terms of a planned IPO after the market showed little enthusiasm.
- WH is now seeking only $1.9 billion from the offering -- much lower than the $5.3 billion originally sought.
- Market volatility has made pricing the offering difficult. But more tellingly, no "cornerstone" investors stepped up to back the deal at its original pricing.
Dive Insight:
The pork world has faced some crazy challenges of late. Here in the U.S., consumption has fallen. In China, meanwhile, demand remained strong despite a drop in production attributable to a fast-spreading disease among pigs.
Now, the disease has come to the U.S. In a situation like that, it's no wonder that investors aren't eager to put money on the table.