JBS’ Pilgrim’s Pride corp. has placed a $5.6 million dollar bid on the Hillshire Brand corp. in an attempt to expand its products, which are currently primarily poultry based.
Pilgrim’s Pride is offering $45 a share, which is a 25 percent premium compared to the recent Hillshire share trends, according to Bloomberg News .
The Pilgrim Pride offer will cancel Hillshire Brand’s plans with Pinnacle Foods if the offer goes through. The price to terminate the plan would cost Hillshire $163 million. However, Pilgrim’s Pride is willing to pay the termination fee as part of its deal with Hillshire, The Chicago Tribune noted.
The company is also willing to take on all of Hillshire’s company debt, totaling at about $553 million, in hopes that Hillshire will consider their offer over Pinnacle Foods. Hillshire has not been doing the well in the investor realm and Hillshire would risk sinking down below investment grade if it went through with the Pinnacle Foods deal, Moody’s Investors Service reported.
Ricky Sandler, Hillshire Investor, is against the Pinnacle Foods purchase and stated that he would vote against it. There is no word at this time whether or not Hillshire will continue its deal with Pinnacle Foods or accept the Pilgrim Pride offer.