By: Tenderloin $$$$
Reply To: 158457 by brutus $$$$
Monday, 2 Oct 2000 at 9:45 AM EDT
Post 158464 of 160343
DLJ unit to buy meat producer IBP for $2.4 billion
NEW YORK, Oct 2 (Reuters) - Investment bank Donaldson Lufkin & Jenrette said Monday that Rawhide Holdings Corp., affiliated with DLJ Merchant Banking Partners, agreed to acquire meat producer IBP Inc. for about $2.4 billion in cash plus assumption of about $1.4 billion in debt.
Under the terms of the deal, each outstanding share of IBP common stock will be converted into the right to receive $22.25 in cash. There are currently about 106 million shares of IBP common stock outstanding.
With the deal expected to close in early 2001, DLJ Merchant Banking Partners and affiliated funds would become the majority owner of IBP. Other investors include Archer Daniels Midland Co. , Booth Creek Partners and some IBP managers.
IBP management will remain in place following the deal, the companies said. No changes in operations or staffing are expected. IBP is a leading producer of fresh beef and pork.
DLJ is in the process of being acquired by Credit Suisse Group for $13.7 billion.
Shares of IBP closed Friday at $18-5/16 on the New York Stock Exchange, off a 52-week high of $25-3/8.
Shares of DLJ closed at $89-7/16, slightly off a 52-week high of $89-1/2.
Cheers
Voluntary Disclosure: Strong Buy : Long and Short Term
Cheers
Voluntary Disclosure: Strong Buy : Long and Short Term
