Source: Tom Johnston, MEATINGPLACE, 6/3/14
 
Hillshire Brands Co. said today that its board of directors authorized discussions with Pilgrim’s Pride Corp. and Tyson Foods following their respective acquisition bids.

Pilgrim’s on Sunday raised its bid to acquire all of Hillshire’s outstanding common stock to $55 per share, valued at about $7.7 billion, from an in initial offer late last month of $45 per share valued at about $6.4 billion.  

Tyson got into the game after Pilgrim’s first offering with a pitch of its own, for $50 per share valued at about $6.8 billion.

Both proposals are conditioned on the termination of a merger agreement that Pilgrim’s has with Pinnacle Foods. Hillshire agreed to acquire Pinnacle for per share consideration of $18 in cash and 0.5 shares of Hillshire common stock.

Hillshire cannot terminate the Pinnacle deal on the basis of either proposal or enter into an alternative acquisition agreement with either of the suitors.

"The Hillshire Brands Board of Directors is not withdrawing, modifying, withholding or qualifying its recommendation with respect to the Pinnacle merger agreement and the merger, or proposing to do so, and is not making any recommendation with respect to either the Pilgrim’s Pride or Tyson Foods proposals," according to a company statement.   

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