Meatpacking Merger Issues and Impacts: Potential IBP Purchase

Three firms extended bids for IBP, Inc., the largest beefpacking and second largest porkpacking firm in the U.S., in the last half of 2000. Bidders included: (1) Rawhide Holdings Corporation, a wholly-owned subsidiary of Donaldson, Lufkin & Jenrette (DLJ) Merchant Banking Partners III, L.P.; (2) Smithfield Foods, Inc.; and (3) Tyson Foods, Inc. IBP announced on January 1, 2001 that it had agreed to be acquired by Tyson Foods. However, on March 29, 2001, Tyson Foods announced it was terminating the purchase.