June 9 - Tyson offered about $1 billion more than Pilgrim's Pride to seal the deal in the bidding war for Hillshire Brands. Fred Katayama reports.
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K-O Tyson. And we're not talking about Mike. Tyson Foods knocked out Pilgrim's Pride in the food fight over Hillshire Brands. The U.S.' largest chicken processor won the bidding war for the sausage and deli meat maker, lured by the fat margins of Hillshire's packaged meat products. Pilgrim's Pride said this morning it has withdrawn its bid. Hillshire confirmed its receipt of Tyson's latest offer but says its board has not yet approved it.
Tyson's offering a lot more than chicken feed: $7.7 billion in cash. That's about $1 billion more than Pilgrim's Pride's second offer in the bidding war.
Tyson's winning bid sent shares of Hillshire soaring even more at the market open. That stock had already shot up nearly 60 percent since Pilgrim's Pride sparked the bidding war last month with its unsolicited bid for Hillshire. Pilgrim's move came just two weeks after Hillshire had agreed to buy the maker of Birds Eye veggies and Duncan Hines cake mixes, Pinnacle Foods.
Both Tyson and Pilgrim's had conditioned their offer on Hillshire's ending its deal for Pinnacle. Pinnacle's stock rose, but the shares of the combatants in the ring, Tyson and Pilgrim's Pride, fell.
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