Dive Summary:
- Continental Grain Co., one of Smithfield Food's largest shareholders, has sent a letter to the board and the SEC asking the company to split its business in three and instate a cash dividend to attract new investors.
- Since taking over in 2006, Smithfield's management team has not shown great stats as far as stock price goes, hence this fairly aggressive move by a shareholder.\
- There has been no comment from the company, however Continental Grain Co. said it was willing to meat with the board and come up with a new direction for the company.
From the article:
It noted that since the current Smithfield management took over in mid-2006, the company's stock has declined by 26 percent while, including dividends, Tyson has returned about 70 percent and Hormel has returned 131 percent.
The shareholder said it was willing to meet with Smithfield's board and management to discuss its plan for the company.
