Starboard Value, a large activist investor in Smithfield Foods, is pressuring the company to explore a break-up rather than go ahead with a planned $4.7 billion takeover by a Chinese meat producer.
Starboard said a broken-up Smithfield could be worth $44 to $55 per share, compared with the $34-per-share price offered by Shuanghui International Holdings in what would be the China's largest purchase to date of a U.S. company.
In a letter to the Smithfield board, delivered by Monday, Starboard Value said it has taken a 5.7 percent stake in Smithfield and that the firm would be worth more if it were broken up into three divisions and then sold.
(Read More: Smithfield Deal May Face State Hurdles)