NEW YORK (TheStreet) -- Shares of Hillshire Brands Co. (HSH) are up 0.48% to $62.60 in after-hours trading on Monday as Pinnacle Foods Inc. (PF) officially announced it is terminating its merger agreement with the company.
Hillshire's board has already provided a written notice to the board of Pinnacle Foods stating its intention to withdraw the pending deal.
Pinnacle, on its part, had not proposed any changes to the deal to make the merger more lucrative than Tyson Food's (TSN) competing offer.
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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 premium valuation."