Rumors of a buyout made Sanderson Farms' stock price jump 6% yesterday and early today, but the poultry processor said it has not received a proposal from Tyson Foods allied with Durational Capital Management. But it did receive a bid from Durational Capital alone.
Despite Wall Street rumors of Tyson's involvement, "Sanderson Farms has not received a proposal from Tyson Foods and Durational Capital Management," read an announcement mid-day today. However, the board of directors "has unanimously rejected an unsolicited proposal from Durational Capital Management, a new shareholder, to acquire the Company for $142 per share."
Sanderson said the offer "very substantially undervalues Sanderson Farms and its future prospects and is significantly below the 52-week high share price of $179.45." However, the stock, even after today's bump, was at $129 a share.
"After careful consideration, with the assistance of its financial and legal advisors, the Board unanimously determined that the highly conditional and opportunistic proposal is not in the best interests of Sanderson Farms or its shareholders.
"The Board remains committed to enhancing value for all shareholders and believes it can generate significant additional value by continuing to execute its strategic organic growth plan, as discussed at the Company's recent Investor Day where it announced initiatives to increase production to serve the growing retail grocery market, including identifying and vetting a site for a new facility."