Shuanghui planning to make a counter-bid for Spanish meat firm

China's Shuanghui International Holdings, which acquired US pork producer Smithfield in September, plans to launch a counter-bid for Spanish household meat manufacturer Campofrio, Spanish newspaper El Mundo reported Wednesday, citing sources familiar with the matter.

A PR representative from Shuanghui International, who wanted to remain anonymous, told the Global Times Thursday that the company refused to comment on "market rumors" over Campofrio's acquisition.

Shuanghui inherited a 36.99 percent stake in Campofrio in September when completing the takeover of Smithfield Foods for $4.7 billion, according to a press release posted by Campofrio.

According to Spanish securities law, Shuanghui has to offer a full purchase bid for Campobrio or cut its stake to less than 30 percent within three months beginning on the deal's closure date.

Following the completion of the Smithfield purchase, the Chinese meat producer announced its intention to sell its shares in Campofrio, which some analysts said is an attempt to gain more time to assess the consequence of a Campofrio restructuring.

After signing an $8 billion non-binding strategic cooperation agreement with the Bank of China, Shuanghui now plans to control Campofrio, said the El Mundo report.

The Spanish meat processor, whose major products are hot dogs and canned ham, recorded a net profit of 1.8 million euros ($2.45 million) in the first nine months of this year, a reduction of 2.9 million euros from the same period of 2012.

Mexico's frozen food company Sigma Alimentos is also targeting Campofrio and issued a 695 million euro takeover offer to the company on November 14.