Pride tops Tyson Foods' offer for Hillshire
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[June 03, 2014]
- 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,
Hillshire said on Tuesday it was neither making any recommendation
with respect to the offers nor modifying or withholding its merger
agreement with Pinnacle.
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(Reporting by Devika Krishna Kumar and Sruthi Ramakrishnan in
Bangalore; Editing by Kirti Pandey)
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