$3.2 billion deal off, IBP stock falls .
The mood around the plant of Storm Lake's largest employer was uncertainty Friday as news filtered down that IBP had filed a lawsuit against Tyson Foods, hoping to force the company to honor a $3.2 billion merger agreement terminated by Tyson on Thursday.
In a move that shocked IBP, Tyson Foods, Inc. withdrew its offer to merge with IBP this week. Tyson Foods cited issues IBP has with the Securities and Exchange Commission (SEC) as well as accounting problems in a subsidiary of IBP.
As a result, IBP stock plummeted Friday, ending the day 28 percent lower than it had started.
"We are shocked by Tyson's announcement," IBP said in a statement issued late Thursday. "As recently as this week, our sense was that Tyson had every intention of going through with the transaction."
However, IBP is not going to take Tyson's actions lying down.
"Tyson's actions are completely unjustified by anything that has transpired and we will do what is necessary to protect our shareholders and our company," said Robert Peterson, IBP's chairman and chief executive officer after finalizing the lawsuit Friday. "We can only speculate that this is a classic case of buyer's remorse."
The suit claims Tyson officials were given routine and accurate updates of the investigation into alleged accounting irregularities at IBP's DFG unit.
Read the rest of this story in the 3/31 Pilot Tribune.