Published June 19, 2013
Smithfield Foods Inc Chief Executive Larry Pope could receive nearly $46.6 million in merger-related payments as part of a planned takeover by China's Shuanghui International, a securities filing showed.
As per a filing made with the U.S. Securities and Exchange Commission (SEC) late on Tuesday, Pope would be eligible to receive about $28 million in cash and $18.6 million in equity.
Robert Manly, Smithfield's chief financial officer, would also be eligible to receive about $22.8 million in potential merger-related payments, the filing showed.
The money does not include the value of benefits which the executives already have a vested right to receive without regard to the buyout deal, the company said.
Smithfield, the world's largest pork producer and processor, also revealed in the proxy filing that it had received offers from two other parties, but eventually ended up sealing the Shuanghui International deal.
Smithfield did not reveal the other two suitors, only labeling them as "Company A" and "Company B".
Continental Grain Co, previously a major shareholder of Smithfield, had earlier urged the company be split into three parts. It later dropped its plan and sold its stake after Shuanghui stepped in to buy Smithfield for about $4.7 billion.
However, Smithfield faces fresh opposition to its deal after activist investor Starboard Value LP revealed a major stake in the company on Monday and urged management to explore a breakup rather than the planned Shuanghui takeover.
(Reporting by Sakthi Prasad in Bangalore; Editing by David Holmes)