Joseph Luter, III, Smithfield Foods chairman, has sold 2 million shares of Smithfield Foods common stock to his four children. He sold the stock at a price of $6 per share. Smithfield filed the transactions with the Securities and Exchange Commission on Friday.
Luter reports that the sale is part of his estate-planning process and is intended to ensure ownership continuity. The sale essentially means that his children will continue to have a say in the company's long-term growth and direction.
Prior to the sale, Luter owned nearly 3.6 million shares of Smithfield Foods common stock. As of Nov. 28, 2008, approximately 143.6 million shares of Smithfield Foods common stock were outstanding.
Source: Smithfield Foods