DOW JONES NEWSWIRES
Smithfield Foods Inc. (SFD) said it plans to sell $250 million
in stock to strengthen its balance sheet and perhaps retire
debt.
The company's current market capitalization is $2 billion.
Shares fell 3.9%, to $13.75, in after-hours trading. The stock
has lost more than a third of its value in the past year.
Proceeds from the offering also will go toward working capital
and general corporate purposes.
Companies in many sectors have been turning to the equity
markets in recent months to raise capital.
Smithfield, the largest U.S. pork-products producer, has posted
losses in four of the past five quarters because of high feed costs
and lower demand. One reason for the drop in demand is the sector's
association with the H1N1 virus, also called swine flu, although
the disease has not been linked to animals.
-By Kathy Shwiff, Dow Jones Newswires; 212-416-2357;
Kathy.Shwiff@dowjones.com