MADRID -(Dow Jones)- Spanish food company Campofrio Alimentacion SA (SpanishCats:CPF) (CPF.MC) said Wednesday it is studying a merger with Groupe Smithfield Holdings, European unit of Smithfield Foods Inc. (NYSE:SFD) (SFD) of the U.S.
In a Spanish regulatory filing, Campofrio said that, according to the terms of a preliminary, non-binding agreement, Campofrio would own 51.5% of the new company, while Smithfield (NYSE:SFD) would own 48.5%.
Smithfield (NYSE:SFD) currently holds a 23% stake in Campofrio.
Campofrio has a market capitalization of EUR458 million.
-By Jonathan House and Christopher Bjork, Dow Jones Newswires; +34-91-3958121; jonathan.house@dowjones.com
(END) Dow Jones Newswires 06-25-08 0913 Copyright (c) 2008 Dow Jones & Company, Inc.
