Smithfield Foods, Premium Standard Farms merger delayed by antitrust option

By Lisa Kerner

Charlotte, N.C., March 30 -The Antitrust Division of the U.S. Department of Justice exercised its option to take an additional 30 days to review Smithfield Foods, Inc.'s pending acquisition of Premium Standard Farms, Inc.

Both companies agreed in February to give the Antitrust Division 60 days from their "substantial compliance" with its request for additional information, plus an extra 30 days if necessary.

The additional 30-day period expires on May 7, according to a company news release.

Under the merger agreement, each share of Premium Standard Farms stock will be converted into 0.678 of a share of Smithfield common stock and $1.25 in cash.

The merger was originally slated to close in the first quarter of 2007.

Smithfield is a pork processor and marketer located in Smithfield, Va.

Premium Standard is a vertically integrated provider of pork products based in Kansas City, Mo.

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