(Removes incorrect stock code for Shuanghui in first paragraph)
MADRID Nov 27 (Reuters) - China's Shuanghui International Holdings plans to launch a counterbid for Spanish meat processor Campofrio, newspaper El Mundo said on Wednesday, citing sources close to a major financing deal for the Chinese group.
Campofrio, a household name in Spain whose products include hot dogs and canned ham, is the target of a 6.8 euros-per-share takeover offer from Mexican frozen food company Sigma Alimentos, valuing the company at 695 million euros ($943 million).
Shuanghui inherited a 37 percent stake in Campofrio when it bought U.S. pork producer Smithfield Foods for $4.7 billion earlier this year.
It said in September it planned to reduce the holding to less than 30 percent by December, below the threshold which would require it to make a full takeover bid under Spanish market rules, and giving it time to consider its options.
However, after signing an $8 billion credit line with the Bank of China on Wednesday to finance its international expansion, Spanish daily El Mundo said Shuanghui now plans to fight for control of Campofrio.
Shares in Campofrio closed on Wednesday up 0.14 percent at 7.20 euros. ($1 = 0.7367 euros) (Reporting by Tracy Rucinski; Editing by Greg Mahlich)