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Unformatted text preview: in the case — and argued on behalf of Excel, claiming it had every right to buy a rival company.
The Reagan administration did not oppose the disappearance of hundreds of small meatpacking firms. On the contrary, it opposed using
antitrust laws to stop the giant meatpackers. In 1986 the U.S. Supreme Court overturned the earlier ruling and approved the merger of
America’s second- and third-largest meatpacking companies. The following year, Monfort agreed to a friendly takeover by ConAgra. “It
seemed to me that if the industry was going to be concentrated,” Ken Monfort explained, “there should be at least three large players instead
of just two.” As part of the deal, he became a top executive at the company, head of the ConAgra Red Meat division, and his family received
about $270 million in ConAgra stock.
By purchasing Monfort, ConAgra became the biggest meatpacker in the world. Today it is the largest foodservice supplier in North
America. In addition to being the number-one...
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This note was uploaded on 02/25/2014 for the course MGMT 120 taught by Professor Litt during the Spring '08 term at UCLA.
- Spring '08