Jefferies On Smithfield Foods Increasing Ownership Of Campofrio

Jefferies has issued a report on the possibility of Smithfield Foods

increasing its ownership in Campofrio. According to Jefferies, "SFD confirmed that it is "evaluating" a transaction that would result in the company becoming the majority stake holder (increase ownership to 88% from 37%) in Campofrio (largest packaged meat company in Europe). The $700M+ transaction would give SFD the front runner position in the European packaged meat segment. The 3% selloff is a reaction to potential equity dilution." SFD has a Buy Rating and a $26 Price Target. SFD closed at $24.04 yesterday.