Tyson Studies SEC?s IBP Review

The Securities and Exchange Commission has ended its review of IBP Inc. subsidiary DFG Foods. But Springdale poultry giant Tyson Foods Inc. is not saying how this will affect its proposed buyout of the world’s largest producer of beef and pork.

IBP of Dakota Dunes, S.D., released its 2000 earnings today following the conclusion of the SEC’s extended review of its accounting practices. It was those practices that forced Tyson to extend a deadline for purchasing IBP on four occasions, the final one at midnight Feb. 28.

IBP accepted Tyson’s original $3.2 billion cash offer Jan. 1. The total package was worth about $4.7 billion, including $1.5 billion in assumed debt.

Tyson officials would not comment today upon hearing of IBP’s final amended statements with the SEC.

But IBP Chairman and CEO Robert Peterson was optimistic about the Tyson merger.

“We are pleased to report that all outstanding issues involving the SEC’s financial review, as well as the accounting issues related to DFG, have now been resolved,” Peterson said. “Today’s earnings release brings this matter to a close and we now look forward to proceeding with the Tyson transaction.”

IBP’s investigation of the DFG subsidiary uncovered potential manipulation of financial records and product theft. It also revealed mismanagement by former DFG managers.

IBP, which employs about 50,000, is projecting 2001 earnings in the $1.80 to $2.20 per share range.

Meanwhile, Little Rock law firm Cauley Geller Bowman & Coates said March 16 it has filed a class action lawsuit in the United States District Court for the District of South Dakota on behalf of all individuals and institutional investors who purchased common stock of IBP between Feb. 7, 2000 and March 13, 2001.

The complaint charges that IBP and some of its officials violated federal securities laws by providing materially false and misleading information about IBP’s business and financial condition, and as a result of these false and misleading statements IBP’s stock traded at artificially inflated prices during the class period.