Update (4:05 p.m.): Updated with Thursday market close information.
The offer trumps that of Pilgrim's Pride (PPC), which came out of nowhere with a $5.5 billion offer for Hillshire on Tuesday. Pilgrim's Pride's offer was for $45 a share, while Tyson's offer is for $50 a share. Tyson's proposal is worth a total of $6.8 billion, likely due to the assumption of debt.
Hillshire closed up 17.73%, or $7.94, to $52.76, while Tyson ended the day up 6.13%, or $2.50, to $43.25.
Separately, TheStreet Ratings team rates HILLSHIRE BRANDS CO as a "hold" with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate HILLSHIRE BRANDS CO (HSH) a HOLD. The primary factors that have impacted our rating are mixed ? some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, generally higher debt management risk and poor profit margins."