Campofrio Rises on Report Shuanghui Is Considering Rival Bid

Campofrio Food Group SA (CFG) rose as much as 5.8 percent after a report that shareholder Shuanghui International Holdings Ltd. is considering a bid for the Spanish meat processor, challenging an offer by Sigma Alimentos.

The Chinese company is studying an offer, newspaper El Mundo reported, citing people close to the situation it didn’t name. Shuanghui said yesterday it signed an $8 billion non-binding funding agreement with Bank of China Ltd. as it seeks to expand, possibly through acquisitions. The Hong Kong-based company declined to comment on its stake in Campofrio.

Sigma, part of Mexican conglomerate Alfa SAB, said Nov. 14 it’s bidding 675 million euros ($918 million), or 6.80 euros a share, for Campofrio. Shuanghui owns about 37 percent of the company, making it the largest shareholder, according to data compiled by Bloomberg. Alfa has 32 percent. The stock traded 4.3 percent higher at 7.51 euros at 9:53 a.m. in Madrid, where Campofrio is based.

Foreign investors have begun to nibble on Spanish assets as the economy emerges from a five-year slump. Microsoft Corp. (MSFT) founder Bill Gates, the world’s richest man, bought a stake in Spanish builder Fomento de Construcciones & Contratas SA in October. Polish lender Bank Zachodni WBK SA said this week it plans to a buy a stake in Santander Consumer Bank.

Shuanghui said in September it would reduce its stake to get under the 30 percent threshold that forces companies to offer to buy out other shareholders. Shuanghui, China’s biggest pork producer, inherited the stake when it bought Smithfield Virginia-based Smithfield Foods Inc. this year.

To contact the reporter on this story: Thomas Mulier in Geneva at

To contact the editor responsible for this story: David Risser at

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