Shareholder Activism at Smithfield Foods and 3 Other Hot Stocks
The board of Smithfield Foods Inc (NYSE:SFD) received a letter from Continental Grain Co suggesting the company, which is the largest producer in the US, be split in three separate units. Continental Grain, which holds 6 percent in Smithfield Foods, also demanded payment of a regular cash dividend. Making a comparison with the company’s rivals, the letter said Tyson Foods (NYSE:TSN) has provided returns, including dividends, of about 70 percent, and Hormel Foods (NYSE:HRL) about 131 percent since the current Smithfield management took charge in mid-2006. In contrast, the Smithfield stock declined 26 percent during this period.