Starboard Value LP, the activist investor urging Smithfield Foods Inc. (SFD:US) to consider a breakup, hired Moelis & Co. and BDA Advisors Inc. as financial advisers.
The two firms will be paid a fee based on the appreciation of Starboard’s stake in Smithfield above the $34-a-share offer from China’s Shuanghui International Holdings Ltd., Starboard said today in a filing.
Shuanghui agreed to acquire Smithfield for $4.7 billion in May in a deal that would give it the world’s largest hog producer. A breakup of the Smithfield, Virginia-based company may value it at about $44 to $55 a share, Starboard, which holds a 5.7 percent stake, wrote in a June 17 letter.
Smithfield closed unchanged today at $32.91 in New York.
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