NEW YORK (TheStreet) -- Shares of Hillshire Brands Co. (HSH) are up 4.70% to $61.69 in pre-market trade after it was reported that Tyson Foods Inc. (TSN) is set to buy the food company for $63 per share, or about $7.8 billion excluding debt, beating offers from Pilgrim's Pride Corp. (PPC), the Chicago Tribune reports.
Tyson said the deal is subject to Hillshire being released from its plan to buy Pinnacle Foods Inc. (PF).
Tyson said its new offer, an increase from its initial bid of $50 per share, is valued at about $8.55 billion, including Hillshire's debt.
The all-cash offer comes after a bidding process conducted by Hillshire ended on Sunday, Tyson said.
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."