I've had a love/hate relationship with China'a Zhongpin (HOGS) for some time now. I love emerging market food stories, and I believe ongoing consolidation in meat processing in China plays into this company's hands. What I don't love, though, is the company's ongoing capacity additions in an arguably already over-built market, to say nothing of the company's emphasis on selling through company-owned stores.
With Tuesday's developments, though, this story may be close to its final squeal.
An Appealing Bid …Maybe
Shortly after the open on Tuesday, Zhongpin announced that it had received a letter from the company chairman Xianfu Zhu offering to take the company private for $13.50 per share in cash. At the time of the letter, Mr. Zhu already owned more than 17% of the company's shares.
Please read the full piece here:
Zhongpin - Market Has Doubts About Proposed Deal