October 17, 2007

Smithfield Foods holder Contigroup plans to buy 1.5 million shares

Smithfield Foods Inc. (SFD) said Tuesday (October 16) that a major shareholder has entered into a plan to buy up to 1.51 million shares of the company's stock.

ContiGroup Cos., which owns more than a 5 percent stake, entered a trading plan for potential purchase of the shares during a one-year period beginning Tuesday, according to a Securities and Exchange Commission filing.

The plan was established under the SEC's Rule 10b5-1, which allows insiders to arrange to buy and sell their company's stock even if they later acquire inside information.

Smithfield directors Paul J. Fribourg and Michael J. Zimmerman are ContiGroup executives, according to Smithfield, a pork and beef processor.

Shares of the Smithfield, Virginia company closed Tuesday at US$29.87, up 57 cents.