MEMO: TYSON CALLS OFF DEAL TO BUY IBP

Tyson Foods Inc., the No. 1 U.S. poultry producer, on Thursday called off a $3.2 billion purchase of IBP Inc. that would have also made it the nation's top beef and pork producer.

The decision was announced nine days after IBP said an investigation into its appetizer unit, DFG Foods, uncovered potential manipulation of financial records and product theft, and mismanagement by former unit managers.

"While we continue to believe that the combination of IBP and Tyson would have created the premiere protein company in the world, we simply cannot endorse a decision to complete the transaction under the facts as we understand them today," said John Tyson, chairman and CEO of the Springdale, Ark.-based Tyson.