Morgan Stanley to put up US$3bn for Smithfield bid

Morgan Stanley (MS.NYSE) has agreed to finance part of Shuanghui International Holdings’ US$4.7 billion bid for US pork producer Smithfield Foods (SFD.NYSE), The Wall Street Journal reported. According to sources that spoke to the Journal, Morgan Stanley, which is also playing an advisory role to Shuanghui, will provide approximately US$3 billion to finance the deal and plans to syndicate the debt to other banks including Chinese institutions. On Wednesday, Shuanghui agreed to pay US$34 per share for Smithfield, a 31% premium over the firm’s Tuesday closing share price. Should the deal proceed as planned, it would be the biggest takeover of a US company by a Chinese firm, according to data compiled by Dealogic.