SPRINGDALE, Ark. — Poultry giant Tyson Foods Inc. announced Thursday that the cash offer portion of its plan to buy meatpacker IBP Inc. will expire Aug. 3.
Tyson agreed to proceed with a $3.2 billion purchase in cash and stock of IBP, based in Dakota Dunes, S.D., after a Delaware judge ruled this month that Tyson Foods could not back out of the deal. As part of the deal, Tyson also will assume $1.5 billion of IBP debt.
With the purchase, Tyson will become the world's largest meat company, accounting for 28 percent of the beef market.
The poultry company, based in Springdale, Ark., said in a news release the cash offer to buy up to 50.1 percent of the outstanding IBP shares began Tuesday and will expire Aug. 3. The company said it extended the offer to coincide with settlement hearings on IBP's lawsuit, scheduled in Delaware Chancery Court.
Under the court-approved stipulation between Tyson and IBP, Aug. 3 is the earliest date Tyson can be obligated to follow through on its cash offer, the poultry company said.