This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Pilgrim's Pride Sails Away from Hillshire Bidding

NEW YORK (The Deal) -- Tyson Foods (TSN - Get Report) has seemingly won the battle for Hillshire Brands (HSH) after sweetening its bid for the maker of Jimmy Dean sausages to $8.5 billion including assumed debt.

Chicago-based Hillshire on Monday confirmed receipt of the $63 per share cash offer, though the target stressed its board has not accepted the bid. Rival suitor Pilgrim's Pride (PPC - Get Report), however, seemingly believes the auction is over, with that Greeley, Colo.-based company saying it had withdrawn its $55 per share cash offer.

Pilgrim's Pride put Hillshire in play last month, announcing an unsolicited $45 per share offer for the processed food manufacturer. Tyson joined the fray days later, offering $50, only to have Pilgrim's Pride counter with $55.

The fight for Hillshire is a battle of two of the world's largest protein producers. Tyson is the planet's second-largest meat processor, behind Pilgrim's Pride majority owner JBS of Brazil.

But Pilgrim's Pride said it was unwilling to pay more for Hillshire.

"As a disciplined acquirer, we determined that it was in the best interests of our shareholders not to increase our proposed price," Pilgrim's Pride CEO Bill Lovette said in a statement. "Pilgrim's will maintain its strong focus on operational excellence and shareholder value, while pursuing acquisition opportunities that advance our stated strategy. We appreciate the support of our shareholders, customers and team members throughout this process."

Hillshire still has a separate deal in place to acquire Pinnacle Foods (PF - Get Report) for $6.6 billion. Both suitors have pushed for that Pinnacle deal to be scuttled, with Hillshire likely forced to pay a $163 million termination fee to Pinnacle.

Hillshire said its board has not yet changed its recommendation on the Pinnacle deal and is not making any recommendation with respect to Tyson. But given the substantial premium being offered and shareholder unrest with the Pinnacle offer, eventual acceptance of the Tyson deal is expected.

Pilgrim's Pride is being advised by Lazard and Cravath, Swaine & Moore while Hillshire is receiving advice from Centerview Partners, Goldman Sachs (GS) and Skadden, Arps, Slate, Meagher & Flom.

Morgan Stanley (MS), JPMorgan Chase (JPM) and Davis Polk & Wardwell are advising Tyson.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
HSH $62.96 0.00%
PPC $27.13 0.00%
PF $42.15 -0.21%
TSN $66.69 0.50%
AAPL $94.19 -1.04%


Chart of I:DJI
DOW 17,651.26 -99.65 -0.56%
S&P 500 2,051.12 -12.25 -0.59%
NASDAQ 4,725.6390 -37.5850 -0.79%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs