Pennfield quashes Cargill merger talks
ROHRERSTOWN - Pennfield
Corporation President Robert B.
Graybill Wednesday said the firm
has moved to cut off all
negotiations on the sale of the
company
Persistant rumors in the ag
community linked Pennfield and
the Cargill Gram Company,
Minneapolis, Minnesota, in a
pending acquisition
As late as Tuesday of this week,
a Cargill spokesman was able to
maintain that his firm and Penn
field were involved in negotiations
which would have lead to Cargill’s
establishing a base in the
Southeastern Pennsylvania-Mary
land market
Cargill maintained closed lips on
the merger possibility
“The only statement we can
make is that we don’t comment on
any acquisition until it is
finalized,” Cargill had said earlier
in the talks.
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There were indications that
Cargill expected a favorable
conclusion on the deal within
several week’s time
One reason for Cargill’s ap
parent eagerness to deal may have
been the growing market share
going to Perdue’s broiler business
on the Eastern Shore of Maryland
and Delaware.
Pennfield is solidly situated m
the Lancaster area poultry market
and would have made a good
barrier to Perdue’s northward
expansion
But on Wednesday, Graybill
circulated the following memo to
Pennfield Corporation’s - em
ployees.
"The Board of Directors has
decided to terminate all
negotiations pertaining to the
acquisition of the corporation by
an outside firm It is our belief that
the interests of Pennfield can best
be served by remaining a
4n7(P^P
privately-held company
“We are fortunate to have had
the excellent growth that Pennfield
experienced during the last ten
years. We are proud of all our
employees who have contributed to
this growth. The Board recognizes
that your contmued efforts will
assure our success as we begin our
second decade,” the memo con
cluded.
Graybill Wednesday afternoon
declined to give a reason for the
decision not to pin forces with
Cargill.
It’s just one of those things that
happens from time to time in
business,” Graybill said
‘lt’s just a shame it leaked,” he
said ref err mg to news repoits of
the possible merger
When asked whether Pennfield
would be open to further offers,
either from Cargill or another
firm, Graybill replied, "Not at this
time ”
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Cargill confirmed that the
decision to cut off negotiations had
come from Pennfield
“We went by their wishes,”
Cargui said
Cargill said it had no immediate
plans to press Pennfield for further
talks, nor were there any pending
Potato stocks down
HARRISBURG - Total stocks of
potatoes stored m Pennsylvania on
March 1, 1981 were 1,150,000
hundredweight, 34 percent less
than a year ago, according to the
Pennsylvania Crop Reporting
Service.
Current total stocks are 28
percent of this year’s production of
4,180,000 cwt., compared with 29
percent on hand a year ago.
U.S. potato stocks on March 1
were estimated at 94.2 million cwt
Lancaster Farming, Saturday, March 21,1981—A35
deals for other similar firms in the
Southeast Pennsylvania area.
“But who knows what could
happen in the future’” a Cargill
spokesman said
For the present, though, Penn
field Corporation will remain a
privately held farm company.—
CH
m the 15 major fall potato
production states. Stocks were
down 23 percent from March 1 last
year and 29 percent less than on
March 1,1979.
Disappearances to March 1,1981
in the 15 major fall states totaled
160 million cwt., two percent below
the same period last year.
Total disappearance to date
mcludes 19.6 million cwt of
potatoes fed to livestock on potato
farms, discarded without grading,
dumped during grading, and lost to
shrinkage (moisture loss).
Disappearance during the month
of February totaled 24.2 million
cwt. compared with 26.2 million
cwt. for February 1980.
The quantity of potatoes
processed to March 1, 1981 in the
seven major states totaled 60.6
million cwt., four percent less than
the same period last year.
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