IBP Seeks Public Sale of 49 Percent of Stock Held By Occidental
DAKOTA CITY, Neb. (AP) _ Part of IBP inc., the nation’s leading producer of fresh beef and pork products, may be going public again.
IBP announced Wednesday it has asked the Securities and Exchange Commission for permission to begin a public offering of 23.5 million shares of its common stock presently held by the company’s parent firm, Occidental Petroleum Corp.
If the request is approved, the public offering should be completed by early fall, company officials said. Once completed, public stockholders will own approximately 49 percent of IBP.
Occidental, which purchased IBP in 1981, will retain the remaining and majority interest in the company. IBP will pay Occidental $960 million for the minority interest Occidental is giving up.
Nearly all of the 23.5 million shares will be offered in the United States and Canada and 2.5 million shares will be offered internationally, the officials said.
Application has been made to list the common stock on the New York Stock Exchange.
The proposed offering of the minority interest in IBP should cause no interruptions in IBP operations or service, IBP chairman and chief executive officer Robert L. Peterson said in the prepared company statement.
″Our suppliers of livestock, our employees and our customers will not notice any change,″ he said.
When Occidental board chairman and chief executive officer Armand Hammer said last month that Occidental was considering a public offering of IBP common stock, local stockbrokers said IBP stock was popular before the packer was acquired by Occidental and they anticipated it would be popular again.
″I would think that interest would pick up again and would be reasonably good,″ said one broker.
Another local broker said Wednesday that the IBP stock most likely will sell for between $19 and $22 a share, and he said there should be interest in it.
″This will give the public the opportunity to own a share of the world’s leading meat packer at a time when there are pretty good profits in pork and beef slaughter,″ the broker said.
IBP employs more than 20,000 persons at 14 beef and pork plants in eight states.