Jim Cramer's Mad Dash: Food Frenzy M&A Continues for Tyson, Hillshire

NEW YORK (TheStreet) -- On CNBC's "Cramer's Mad Dash" segment, co-host David Faber said there is "a lot of complexity" in the food industry, especially with the recent M&A mania. 

Tyson Foods (TSN) is offering to purchase Hillshire Brands (HSH) for $50 per share, topping the previous $45 offer from Pilgrim's Pride (PPC). A takeover of Hillshire Brands would likely result in the company breaking off its deal to buy Pinnacle Foods (PF). 

TheStreet's Jim Cramer, co-manager of the Action Alerts PLUS portfolio, pointed out that Bernstein downgraded shares of Hillshire Brands, but suggested that an even higher takeover bid could come in the future. 


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After poking fun at the people who said Hillshire was "dead in the water" for lacking organic and natural foods, he turned to Pinnacle Foods. Due to the company's solid dividend yield and good management, it only makes sense for another company "to buy Pinnacle," he said.

Faber added that Hillshire Brands should not pay a breakup fee to Pinnacle Foods, unless it has an actual deal in place to be acquired.


-- Written by Bret Kenwell in Petoskey, Mich.

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At the time of publication, Cramer's Action Alerts PLUS had no position in companies mentioned.

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