CHINA’S BIG FOOD DEAL  | The Shuanghui Group of China agreed on Wednesday to buy the American meat processor Smithfield Foods for around $4.7 billion, the two companies announced Wednesday.
Shuanghui, which is the largest pork processor in China, will pay $34 a share to acquire Smithfield, a 31 percent premium on the company’s closing share price on Tuesday.
The deal is subject to regulatory approval by the Committee on Foreign Investment in the United States, and is expected to close in the second half of the year.
“This is a great transaction for all Smithfield stakeholders, as well as for American farmers and U.S. agriculture,†C. Larry Pope, Smithfield’s chief executive, said in a statement. “It will be business as usual â€" only better â€" at Smithfield. We do not anticipate any changes in how we do business operationally in the United States and throughout the world.â€
DealBook » | 
SOFTBANK AND SPRINT CLEAR A HURDLE Â |Â SoftBank of Japan has reached an agreement to win national security clearance for its $20.1 billion bid for Sprint Nextel, surmounting one of the biggest hurdles to the deal, Michael J. de la Merced writes in DealBook.
To pass the review by a government panel, both SoftBank and Sprint agreed to a number of concessions. For example, the companies will give the United States veto power over a director on the new board of Sprint, the member who would be responsible for overseeing compliance with national security.
The government panel, the Committee on Foreign Investment in the United States, or Cfius, had until midnight Tuesday to render its verdict.
Now SoftBank and Sprint must win over the Federal Communications Commission, which is expected to finish its review in a week or so, and Sprint shareholders, who are scheduled to vote on June 12.
DealBook »
The decision is a turning point in what has been an escalating conflict between the two countries. Switzerland’s finance minister said the move would probably enable Swiss banks to accept an offer by the United States government to hand over client details in exchange for a promise against future legal repercussions.
‘‘It is important for us to be able to let the past be the past,’’ Eveline Widmer-Schlumpf, said at a news briefing in Bern, Switzerland. She declined to give any details about the program but said banks will have one year to decide whether to accept the American offer.
DealBook »
ON THE AGENDA Â |Â The Federal Deposit Insurance Corporation is scheduled to release its latest batch of bank results, including troubled institutions. Paul Volcker will speak at the Economic Club of New York.
Morgans Hotel Group, the owner and manager of the boutique hotels, struck a rescue investment deal with Mr. Burkle’s Yucaipa Companies in late 2009 on onerous terms, Steven Davidoff writes in the Deal Professor column. Mr. Burkle has since taken more control, including amassing 27.9 percent of Morgans and $88 million of its debt.
Now the hotelier has agreed to give Mr. Burkle’s investment firm several properties to cancel some of its debt, in exchange for the billionaire’s backing a $100 million rights issuance. That has riled up OTK Associates, the vehicle of other big investors in Morgans, which has taken the matter to court.
“You can’t blame Yucaipa for acting in its self-interest, but you can blame Morgans’ management then for failing to appreciate the consequences†of its rescue deal, Mr. Davidoff writes.
Deal Professor »
Valeant Shows How M.&A. Can Favor the Brave  | The drug maker has been buying up smaller firms and deeply slashing costs. Executives of other companies may want to consider the lesson from Valeant, Robert Cyran of Breakingviews writes.
DealBook »
Dell Prepares to Pitch Buyout Offer to Investors  | Within days, Dell and its potential buyers will be able to put their case directly to the company’s shareholders, who remained divided on whether to support the multi-billion dollar deal.
WALL STREET JOURNAL
Warburg Pincus-Led Consortium Buys Stake in Vietnamese Retailer  | A consortium led by the private equity firm Warburg Pincus has agreed to buy a 20 percent stake in the Vietnamese retailer Vingroup Joint Stock Company for $200 million.
REUTERS
Apple To Continue Acquisition Spree  | Apple’s chief executive, Timothy D. Cook, expects the technology giant to continue to make acquisitions after Apple bought nine companies since last October.
ALLTHINGSD
Moody’s Upgrades U.S. Banking Sector to Stable  | For the first time since 2008, the credit ratings agency Moody’s Investors Service has upgraded the outlook of the United States banking sector from negative to stable, as the country’s economy gradually improves.
BLOOMBERG NEWS
Bankia Shares Tumble After a New Stock Issue  | Shares in Bankia, the giant Spanish mortgage lender that was at the heart of the country’s banking crisis, fell sharply on Tuesday after 11.5 billion new shares were issued as part of a 15.5 billion euro recapitalization plan.
DealBook »
German Banks Need $18 Billion in Extra Capital  | The German banking sector must fill a capital shortfall of around $18 billion to comply with tougher regulations, according to the country’s financial regulator.
WALL STREET JOURNAL
Central Banks Move to Jumpstart Economies  | The economic problems still facing the world’s major economies, including the United States and Japan, have forced central banks to be more aggressive in their policy decisions.
THE NEW YORK TIMES
Bank of Ireland to Raise $650 Million in Unsecured Bonds  | The Bank of Ireland is planning to raise around $650 million in unsecured bonds, in the latest sign that once struggling European banks are back in favor with investors.
RTE NEWS
Tamping Down Expectations on China’s Growth  | To understand the Chinese economy, it also helps to pay attention to changes in Chinese politics, Bill Bishop writes in the China Insider column.
DealBook »
Europe to Rule on Slovenia Restructuring Plan  | European policymakers will decide on Wednesday whether to support Slovenia’s efforts to strengthen its economy, which includes a $1.2 billion recapitalization of the country’s banks.
BLOOMBERG NEWS
Carlyle Group Buys Stakes in Chinese Shopping Malls  | The Carlyle Group has bought a 49 percent stake in two Chinese shopping malls for an undisclosed fee, as the private equity firms tries to tap into the country’s growing consumer culture.
BLOOMBERG NEWS
Morgan Stanley Said to Raise Up to $3 Billion for Property Fund  | Morgan Stanley is looking to raise between $1 billion and $3 billion for a new global real estate fund, according to Bloomberg News.
BLOOMBERG NEWS
Warburg Pincus May Triple Its Investment in Bausch & Lomb  | Warburg Pincus could earn around $3.9 billion after the private equity firm sold Bausch & Lomb to Valeant for $8.7 billion.
PE HUB
Private Equity Taps into High Yield Frenzy  | With investors clamoring for returns, private equity firms have issued a record amount of European high yield bonds so far this year to help fund new deals and refinance their indebted portfolio companies.
FORBES
Investor Said to Pull Money from SAC Capital  | Ironwood Capital Management is expected to pull around $100 million from SAC Capital Advisors, according to Bloomberg News.
BLOOMBERG NEWS
Hospital Operator Adopts Poison Pill to Thwart Hedge Fund  | The hospital operator Health Management Associates has adopted a poison pill in a bid to fend off the takeover approach from the hedge fund Glenview Capital Management.
MARKETWATCH
Hedge Funds Shift Wealth from Investors to Managers  | Many hedge funds have morphed into aggressive investment products that are desperately chasing returns to outperform their benchmarks, which end up transferring wealth from investors to managers.
FORBES
Hedge Funds Join to Renegotiate Caesar’s Debt  | A group of investors that owns debt from Caesar’s Entertainment, including the hedge funds Third Point and Silver Point, are banding together to negotiate better terms for the loans, The Wall Street Journal reports.
WALL STREET JOURNAL
Suntory Plans Big I.P.O. for Its Food and Beverage Unit  | The company is said to be looking to raise $4.8 billion by listing Suntory Beverage and Food, in what is expected to be Asia’s biggest initial public offering this year.
DealBook »
In Stock Offering, Coty Seeks Up to $1 Billion  | The cosmetics company Coty plans to sell 57.1 million shares at $16.50 to $18.50 apiece, according to an amended prospectus filed on Tuesday. At the midpoint of that range, the company would be valued at about $6.7 billion.
DealBook »
Alibaba Targets Hong Kong for New Offering  | The e-commerce giant Alibaba is planning to snub New York by focusing its initial public offering in Hong Kong, which could value the company at $70 billion.
FINANCIAL TIMES
Russian Grocery Chain Plans I.P.O. in London  | The investment firms that own Lenta, a St. Petersburg grocer chain, are in talks with bankers about an initial public offering in London that could raise around $1.5 billion.
FINANCIAL TIMES
Sovereign Wealth Funds Said to Back Russian Bank Offering  | Some of the world’s largest sovereign wealth funds bought two-thirds of the recent $3.3 billion offering from the state-backed Russian bank VTB, the Financial Times reports.
FINANCIAL TIMES
Insight Ventures Raises $2.57 Billion in New Fund  | The New York firm Insight Venture Partners, which backed Tumblr and Twitter, has raised a new fund worth $2.57 billion in one of the largest fundraising efforts on record.
TECHCRUNCH
Twitter Wins Legal Case Over Spam  | Twitter has settled ongoing litigation against TweeterAdder, which will force the company to stop spamming practices that breach Twitter’s terms of service.
ALLTHINGSD
Former KPMG Partner to Plead Guilty  | Federal prosecutors said that Scott London, a former KPMG partner, had agreed to plead guilty to securities fraud for providing confidential information to a friend.
ASSOCIATED PRESS
SAC Could Give the Justice Dept. a High-Value Target  | Portraying SAC Capital Advisors as a den of thieves could send a message about how the Justice Department is policing Wall Street, Peter J. Henning writes in White Collar Watch.
DealBook »
Online Currency Exchange Accused of Laundering $6 Billion  | The operators of a global currency exchange ran a $6 billion money-laundering operation online, according to federal prosecutors in New York.
THE NEW YORK TIMES
Citigroup Settles $3.5 Billion Mortgage Securities Case  | Citigroup has reached a settlement with federal authorities over accusations that the bank misled Fannie Mae and Freddie Mac into buying $3.5 billion of mortgage-backed securities.
REUTERS
Volcker’s Aim: Responsive Government  | Paul Volcker plans to begin a foundation called the Volcker Alliance that is aimed at improving how government works at the local, state and federal levels.
THE NEW YORK TIMES
