Tyson Sets 4th Deadline for IBP Deal

Tyson Foods Inc. has extended the expiration date of a cash offer to purchase 50.1 percent of IBP Inc. stock to Feb. 20, the fourth deadline since IBP first announced it had accepted Tyson’s offer on Jan. 1.

Springdale-based Tyson, the nation’s leading poultry producer, said it would delay closing the offer for the Dakota Dunes, S.D.-based meat packing giant until the Securities and Exchange Commission resolves its issues with some of IBP’s bookkeeping inaccuracies.

Tyson has offered $3.2 billion in cash and stock for IBP.

“We are committed to finalizing this transaction,” John Tyson, president and CEO of Tyson Foods, said Tuesday. “However, we feel compelled to delay the close of the cash tender and the filing of the exchange offer documents until IBP’s issues with the Securities and Exchange Commission are resolved. Until then, we will continue monitoring this situation to determine what impact, if any, the resolution of these questions will have on the financial statements and business.”

Tyson will become the nation’s leading poultry, beef and pork producer if the deal is completed.

Shares of Tyson (NYSE: TSN) were trading at $13.41 Wednesday morning after closing at $13.85 on Tuesday. Shares of IBP (NYSE: IBP) traded at $26.45 after closing at $26.51 on Tuesday.