
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: THURSDAY, January 5, 1995                   TAG: 9501050029
SECTION: BUSINESS                    PAGE: B-7   EDITION: METRO 
SOURCE: Associated Press
DATELINE:                                 LENGTH: Medium

TYSON TO CONTINUE CHICKEN WAR, APPEAL WLR TAKEOVER RULING

Tyson Foods Inc. said it will appeal a ruling that helped kill its bid to acquire Broadway, Va.-based WLR Foods Inc.

Tyson, the country's largest poultry producer, filed notice Tuesday that it will appeal U.S. District Judge James Michael's ruling this past summer upholding Virginia's anti-takeover laws.

``We're not surprised,'' said Delbert L. Seitz, WLR's chief financial officer.

In a statement released Wednesday, James L. Keeler, WLR Foods president and chief executive officer, said "WLR Foods intends to continue its vigorous defense. We also expect that other publicly held Virginia corporations will be interested in joining in the defense of the Virginia corporate statutes challenged by Tyson Foods."

Tyson's lawyer, James Blair, had suggested he might pursue the fight for WLR to an appeals court. And Tyson has held onto the 600,000 WLR shares it owns - a 4.9 percent stake that makes it WLR's second-largest stockholder.

Tyson spokesman Archie Schaffer has said that even though the Arkansas-based company dropped its $330 million bid in the summer, it would like to join forces with WLR at some point. But that is unlikely as long as Michael's rulings stand, he said.

Tyson unsuccessfully had argued before Michael that Virginia's anti-takeover laws were unconstitutional, making it almost impossible for a hostile takeover to succeed.

Tyson's Virginia lawyer, Thomas F. Farrell II, declined comment on the grounds for the appeal. Within a couple of weeks, Tyson will tell the 4th U.S. Circuit Court of Appeals in Richmond why it believes Michael's ruling should be overturned.

by CNB