Thursday, August 19, 2021

Family feud tanks Smithfield owner’s shares

The Wall Street Journal reports that when a family feud between son and father who control WH Group Ltd. in China, which owns Smithfield Foods, became public, prices for the company’s shares dropped by 11 per cent this week.

According to the Journal, former WH Group executive Wan Hongjian has accused his father, 81-year-old industry veteran Wan Long, of embezzling money and evading taxes.

Hongjian also alleged that the WH Group engaged in fraud, and that Gun Lijun, the new chief executive of WH Group, has caused millions in losses for the processor from foreign exchange hedging. 

In a statement, WH Group said the allegations were “untrue and misleading.” 

Smithfield Foods is the largest hog producer and pork packer in the United States.