Sponsored by: Investment Center

Something new in your business?  Click here to submit your business press release

Chamber Corner | Main Street News | Job Hunt | Classifieds | Calendar | Illinois Lottery 

Pilgrim's Pride tops Tyson Foods' offer for Hillshire

Send a link to a friend  Share

[June 03, 2014]   (Reuters) - Pilgrim's Pride Corp, the second largest U.S. chicken processor, raised its offer for Hillshire Brands Co, escalating a bidding war with Tyson Foods Inc for the maker of Jimmy Dean sausages.

Hillshire's shares rose 9 percent at $58.50 in premarket trading, after Pilgrim's Pride said it raised its offer to $55 per share in cash from $45.

Tyson Foods, the largest U.S. meat processor, has offered $50 per share in cash.

Hillshire said it would "provide information" to both bidders and conduct talks with them.

Pilgrim's Pride said its offer valued Hillshire at $7.7 billion, including debt. Tyson's offer values Hillshire at $6.8 billion, including $500 million in debt.

The two companies offered to buy Hillshire last week.

Pilgrim's Pride said the raised offer represents a 49 percent premium to Hillshire's share price a day before Hillshire announced a bid for Pinnacle Foods Inc.

Hillshire said on May 12 that it planned to buy Pinnacle, the maker of Birds Eye frozen vegetables, in a deal valued at $4.3 billion, excluding debt.

Hillshire said on Tuesday it was neither making any recommendation with respect to the offers nor modifying or withholding its merger agreement with Pinnacle.

[to top of second column]

(Reporting by Devika Krishna Kumar and Sruthi Ramakrishnan in Bangalore; Editing by Kirti Pandey)

[ 2014 Thomson Reuters. All rights reserved.]

Copyright 2014 Reuters. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

< Recent articles

Back to top