Yes! ! ! !

http://dailynews.yahoo.com/h/nm/20010329/bs/food_ibp_dc_1.html

NEW YORK (Reuters) - Poultry giant Tyson Foods Inc. (NYSE:TSN - news) called off its $3.2 billion merger with meat packing firm IBP Inc. (NYSE:IBP - news) on Thursday, citing ``numerous breaches'' of the companies merger agreement that could not be fixed.

The Springdale, Ark.-based Tyson said in a letter to IBP's board that a previously- undisclosed federal accounting probe into one of IBP's divisions and the resulting decision to dramatically lower the company's earnings guidance for the first quarter earlier this month forced the deal's cancellation.

``Unfortunately, we relied on that misleading information in determining to enter the merger agreement,'' Tyson said in its letter. ``Consequently, whether intended or not, we believe Tyson Foods Inc. was inappropriately induced to enter into the merger agreement. Further, we believe IBP cannot perform under the merger agreement.''

Tyson also said it has began legal action in Arkansas to receive undisclosed compensation from IBP for having to terminate the deal.

-- Anonymous, March 29, 2001

Answers

This looks like it will drag out for a while....

IBP Sues to Force Tyson to Honor Agreement

NEW YORK (Reuters) - Meat packing firm IBP Inc. (NYSE:IBP - news) on Friday filed a lawsuit seeking to force poultry giant Tyson Foods (NYSE:TSN - news) to honor the companies $3.2 billion merger agreement terminated by Tyson on Thursday.

``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 in a prepared statement. ''We can only speculate that this is a classic case of buyer's remorse.''

The suit, filed in Delaware Chancery court, notes that Tyson officials were provided routine and accurate updates of the ongoing investigation into allegations of accounting irregularities at IBP's DFG unit.

Tyson, in a statement released late Thursday, said it was terminating the agreement to acquire the Dakota Dunes, S.C.-based IBP because of ``numerous breaches'' of the merger agreement, including what it alleged was inadequate disclosure of the ongoing federal probe into DFG's accounting practices.

IBP, however, said it provided Tyson with ``routine and accurate updates of management's assessment of potential charges'' related to accounting problems at the unit.

-- Anonymous, March 30, 2001