This Day On The Street
Continue to site right-arrow
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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Pilgrim's Pride Sails Away from Hillshire Bidding

Stocks in this article: TSN HSH PPC PF GS JPM MS

NEW YORK (The Deal) -- Tyson Foods (TSN) 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Pride (PPC), however, seemingly believes the auction is over, with that Greeley, Colo.-based company saying it had withdrawn its $55 per share cash offer.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) 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.

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.64 +9.41 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs