Tyson makes takeover offer

THE ASSOCIATED PRESS

SPRINGDALE, Ark. -- Poultry giant Tyson Foods Inc. has made a $2.8 billion cash-and-stock offer to buy IBP Inc., the country's largest producer of beef and second-largest producer of pork. Tyson would also assume $1.4 billion in IBP debt.

Shares of IBP jumped 9 percent on the news, while Tyson shares dropped 9.4 percent.

Tyson said today that a merger of the two companies would result in the world's largest marketer of beef, pork and chicken.

Tyson said the offer was superior to competing bids made by Virginia-based Smithfield Foods Inc. and a group including IBP senior management.

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