Tyson Food Inc.'s top executive acknowledged the possibility of buying part of Swift & Co. at the Reuters Food Summit in Chicago earlier this week.
While an industry analyst finds that interesting, he's not sure there's much to it.
"Things are getting more interesting, aren't they?" said Steve Kay, publisher of Cattle Buyers Weekly.
Kay said the comments made by John Tyson, Tyson Food chairman and chief executive officer, could be no more than putting pressure on its rival, Smithfield Foods, which bought former ConAgra Foods feedlots late last year, including two in Weld County and one in Yuma County. "Tyson probably recognizes they couldn't buy the beef division of Swift, but they might be interested in the pork division if Smithfield were to buy Swift. Smithfield couldn't get the pork division because of their size," Kay said.
Swift & Co. has a policy of not commenting on rumors or speculation, said Jim Herlihy, company spokesman.
Rumors have circulated that Smithfield may be interested in buying the Greeley-based Swift & Co., which became a privately held company that is the third largest beef processor in the country. In September 2002, Swift & Co. was officially formed when Hicks, Muse, Tate & Furst Inc. of Fort Worth, Texas, in partnership with Booth Creek Management of Vail, completed the purchase of the beef, pork and lamb processing operations of ConAgra Foods.
According to wire reports, Tyson said he would be interested in acquiring certain plants from Swift & Co., but downplayed the likelihood of buying the entire company. Tyson also indicated interest in Oscar Meyer, currently owned by Kraft Foods, but said he hasn't determined the value of acquiring what would be a secondary brand for his beef and poultry company. Turning back to Swift, Tyson said he doubts he would be interested in buying the entire company.
"I think we'd look at the right geographical plants to balance us out. I'm not sure we'd need all of Swift but maybe one or two plants would balance," he said.
While an industry analyst finds that interesting, he's not sure there's much to it.
"Things are getting more interesting, aren't they?" said Steve Kay, publisher of Cattle Buyers Weekly.
Kay said the comments made by John Tyson, Tyson Food chairman and chief executive officer, could be no more than putting pressure on its rival, Smithfield Foods, which bought former ConAgra Foods feedlots late last year, including two in Weld County and one in Yuma County. "Tyson probably recognizes they couldn't buy the beef division of Swift, but they might be interested in the pork division if Smithfield were to buy Swift. Smithfield couldn't get the pork division because of their size," Kay said.
Swift & Co. has a policy of not commenting on rumors or speculation, said Jim Herlihy, company spokesman.
Rumors have circulated that Smithfield may be interested in buying the Greeley-based Swift & Co., which became a privately held company that is the third largest beef processor in the country. In September 2002, Swift & Co. was officially formed when Hicks, Muse, Tate & Furst Inc. of Fort Worth, Texas, in partnership with Booth Creek Management of Vail, completed the purchase of the beef, pork and lamb processing operations of ConAgra Foods.
According to wire reports, Tyson said he would be interested in acquiring certain plants from Swift & Co., but downplayed the likelihood of buying the entire company. Tyson also indicated interest in Oscar Meyer, currently owned by Kraft Foods, but said he hasn't determined the value of acquiring what would be a secondary brand for his beef and poultry company. Turning back to Swift, Tyson said he doubts he would be interested in buying the entire company.
"I think we'd look at the right geographical plants to balance us out. I'm not sure we'd need all of Swift but maybe one or two plants would balance," he said.
