Sep. 3 at 3:36 PM
Smithfield Foods Inc. shares fell 4% Wednesday after major shareholder SFDS UK Holdings announced a secondary offering of 16M common shares. The company will receive no proceeds from the sale.
The offering includes a 30-day option for underwriters to buy up to 2.4M additional shares at the offering price, minus discounts and commissions. Morgan Stanley, BofA Securities, and Barclays are joint bookrunners.
Investor concerns over dilution from large secondary offerings, despite no new shares being issued by Smithfield, appear to be driving the negative market reaction.
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