Boston, MA 06/04/2014 (wallstreetpr) – Pilgrim’s Pride Corporation (NASDAQ:PPC) overtakes the bid of Tyson Foods Inc. (NYSE:TSN) to acquire Hillshire Brands (NYSE:HSH). Initially, when Pilgrim’s Corp decided to take over Hillshire, it had made an offer of $45 per share. However, there was one more takeover offer waiting for Hillshire. Tyson Foods offered $50 per share to acquire Hillshire. But Pilgrim’s Corp was not the one to back off, and it hiked its offer to $55 per share.
About Pilgrim’s Corp:
Brazilian company called JBS. SA owns 75% of Pilgrim’s Pride Corporation (NASDAQ:PPC). It is well-known that JBS.SA is the world’s largest producer of meat. The current proposal by Pilgrim’s Corp is all in cash offer amounting to $7.7 billion including debt. Pilgrim’s Pride is currently the second largest chicken processor in the United States.
What Is The Stance Of Hillshire Brands?
Hillshire Brands (NYSE:HSH) has confirmed receiving of offer from both Pilgrim’s Pride as well as Tyson Foods. On the other hand, Hillshire has made an offer to Pinnacle Foods Inc. (NYSE:PF) made an offer to acquire its business. The offer deal consists of $18 per share and the total amounts to around $6.6 billion. The above mentioned offer has got a green signal by the boards of both the respective companies. The deal also means that Hillshire accepts $2.48 billion of long-term debt of Pinnacle.
Hillshire has commented that it shall enter into discussions with both Pilgrim’s Corp and Tyson Foods Inc. (NYSE:TSN). It has clearly not indicated which deal it shall opt for. Also, many investors believe that Pinnacle is not a profitable deal for Hillshire Brands as it is required to assume its debt also.
If Hillshire Brands (NYSE:HSH) accepts any of the takeover bids then it might have to forgo its deal to buy Pinnacle Foods Inc. (NYSE:PF). There are also reports hovering about the hike in offer from Tyson Foods might come soon.
The world meat market is increasing fast, and such mergers and acquisitions are a natural consequence. We can see more of such takeovers in coming future.
