Tyson Foods’ higher bid for Hillshire Brands has caused Pilgrim’s Pride to withdraw its offer for the convenience food maker.
Pilgrim's first announced its intentions to acquire Hillshire two weeks ago, but soon faced competition from Tyson.
Tyson’s bid of $63 per share depends on Hillshire ending its agreement to buy Pinnacle Foods.
“The Hillshire Brands acquisition would represent a defining moment for Tyson Foods,” Donnie Smith, Tyson’s president and CEO. “Our strategy has been to grow our prepared foods business, and it has been our aspiration to be a leader in retail prepared foods just as we are in chicken. Now we will have those iconic #1 and #2 brands in numerous categories.”
However, Hillshire has not agreed to the takeover.
“The Hillshire Brands board of directors has not approved the Tyson Foods offer, has not changed its recommendation regarding the Pinnacle merger and is not making any recommendation with respect to the Tyson offer,” Hillshire said in a statement, noting that it “does not have the right” to scrap the Pinnacle merger.
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