Key investor supports Smithfield megabuyout

Continental Grain, a major stakeholder in pork producer Smithfield Foods (SFD.NYSE), has endorsed the US$4.7 billion bid by China’s Shuanghui International Holdings to takeover Smithfield, Bloomberg reported. Continental, the second largest stakeholder after Blackrock (BLK.NYSE), plans to exit its 5.8% stake in Smithfield following the bid. Continental had previously advocated for a division of Smithfield into three businesses after its shares underperformed those of competitors. “We have been advocating for value creation and are pleased that the Smithfield board of directors and management are being proactive in realizing value for the benefit of all of its shareholders,” Continental Chairman and CEO Paul Fribourg said in a written statement.