mostlycloudy
Thursday May 28th, 2015 2:21PM

Hillshire to talk with Tyson, Pilgrim's Pride

By The Associated Press
NEW YORK (AP) Hillshire Brands says it will hold separate talks with Pilgrim's Pride and Tyson Foods, as the two meat processing heavyweights engage in a bidding war for the maker of Jimmy Dean sausages and Ball Park hot dogs. <br /> <br /> The announcement by Hillshire comes a day after Pilgrim's Pride raised its bid to $55 per share, or $6.8 billion, from $45 per share. That tops Tyson's offer of $50 per share, or $6.2 billion, made last week. <br /> <br /> Those values are based on Hillshire's 123 million shares outstanding. Pilgrim's Pride puts the total value of its new bid at $7.7 billion. Tyson Foods values its proposal at $6.8 billion, including debt. <br /> <br /> Both Pilgrim's Pride and Tyson have plants in north Georgia.<br /> <br /> The takeover bids by Pilgrim's Pride and Tyson Foods are being driven by the desirability of brand-name, convenience products like Jimmy Dean breakfast sandwiches. Those types of products are more profitable than fresh meat, such as chicken breasts, where there isn't as much wiggle room to pad prices. <br /> <br /> While Pilgrim's Pride and Tyson both sell such products, their businesses have been more focused on supplying supermarkets and restaurant chains. <br /> <br /> Both offers are contingent on Hillshire abandoning its plan to acquire Pinnacle Foods Inc., which makes Birds Eye frozen vegetables and Wish-Bone salad dressings. Some investors had questioned the wisdom of that deal, given the outdated image of some of Pinnacle's brands and the differences in the two companies' product portfolios. <br /> <br /> In its statement issued Tuesday, Hillshire noted that it can't just scrap its deal with Pinnacle. But a term in Hillshire's deal with Pinnacle allows it to consider alternative proposals that would be superior for stockholders. <br /> <br /> Pilgrim's Pride has said it would pay the $163 million breakup fee to call off the deal between Hillshire and Pinnacle. <br /> <br /> Hillshire, based in Chicago, had been trying to diversify its own portfolio by moving into other areas of the supermarket with the $4.23 billion acquisition of Pinnacle. <br /> <br /> Based in Greeley, Colorado, Pilgrim's Pride Corp. is owned by Brazilian meat giant JBS. Tyson Foods Inc., the biggest U.S. meat processor, is based in Springdale, Arkansas. <br /> <br /> Shares of Hillshire Brands rose $4.93, or 9.2 percent, to $58.50 before the market open.
© Copyright 2015 AccessNorthGa.com
All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
Judge denies motions to move, delay Tsarnaev trial
Lawyers for Boston Marathon bombing suspect Dzhokhar Tsarnaev asked a federal appeals court Wednesday to overturn a judge's decision to not move his upcoming trial out of state.
10:02PM ( 4 months ago )
High court to adopt electronic filing of cases
The Supreme Court is belatedly developing an electronic filing system similar to those used in courts around the country, Chief Justice John Roberts said Wednesday in his annual end-of-year report.
7:57PM ( 4 months ago )
Storm brings snow, cold to West for New Year's
A blustery winter storm dumped snow and ice across the West on Wednesday, making driving treacherous in the mountains from California to the Rockies and forcing residents and party-goers in some usually sun-soaked cities to bundle up for a frosty New Year's.
5:19PM ( 4 months ago )
U.S. News
State DOT awards $48M contract for NE Ga. road project
The state Department of Transportation has awarded a $47.8 million contract for nine miles of work on a northeast Georgia road.
9:37AM ( 4 months ago )
Business News
Grass fire impacts rush hour traffic on 985
Rush hour traffic on I-985 was slowed by a grass fire Wednesay afternoon with one lane closed while firefighters fought the blaze.
10:19PM ( 4 months ago )
Hall County conviction, sentencing to be reviewed by SCOGA
The State Supreme Court has agreed to hear the appeal of a Hall County man when they reconvene in January.
2:37PM ( 4 months ago )
Maysville man dies from Banks County wreck
The Georgia State Patrol reports that alcohol and/or drugs were factors a single-vehicle wreck that claimed the life of a Maysville man in Banks County Tuesday night.
11:07AM ( 4 months ago )
Local/State News
Roosevelt Square re-design project nears reality
Architectural plans for the redesign of Roosevelt Square were finally presented to the Gainesville City Council members at their work session Thursday morning.
1:14PM ( 1 hour ago )
US jobless aid applications rose last week; total still low
WASHINGTON (AP) — More Americans sought unemployment benefits last week, though the overall level remains low and points to a healthy job market.Weekly applications increased 7,000 to a seasonally adj...
8:57AM ( 5 hours ago )
NE Ga.'s jobless rate drops in April; Gainesville metro has lowest rate in state
The Georgia Department of Labor announced Thursday morning that the unemployment rate for Northeast Georgia dropped for the month of April, and once again, the Gainesville Metro posted the lowest jobless rate of any metro in the state of Georgia.
By AccessWDUN staff
5:31AM ( 8 hours ago )
New federal rules on stream protection hailed, criticized
New EPA rules designed to better protect small streams, tributaries, wetlands and drinking water are being criticized by Republicans and farm groups.
5:00AM ( 9 hours ago )
Homeowners clean up in Texas; death toll climbs to 21
HOUSTON (AP) — Homeowners dragged soggy carpet to the curb and mopped up coffee-colored muck Wednesday after a barrage of storms and floods in Texas and Oklahoma left at least 21 people dead and 11 ot...
11:09PM ( 15 hours ago )