UPDATE 1-Pilgrim's declines comment on possible JBS bid

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CHICAGO, Sept 2 (Reuters) - Pilgrim's Pride Corp PGPDQ.PK said Wednesday it would not comment on a newspaper report that Brazilian beef company JBS (JBSS3.SA) may be interested in taking over the U.S. chicken company.

Pilgrim's Pride shares were slightly higher in morning trading.

"We don't comment on rumors or speculation," Pilgrim spokesman Gary Rhodes told Reuters in an email.

Newspaper Valor Economico reported Wednesday, without saying how it obtained the information, that JBS, the world's largest beef processor, had approached Pilgrim's Pride for possible takeover talks.

A JBS official in a telephone call with Reuters declined to comment on the newspaper story.

Pilgrim's Pride, which filed for bankruptcy in December 2008, has said it intends to exit from bankruptcy by the end of this year.

Pilgrim's shares were up 10 cents, or 2 percent, at $5.00 in morning trading. (Reporting by Bob Burgdorfer; Editing by Walter Bagley)