Was Tyson Foods’ winning bid for Hillshire Brands too high a price to pay? More than one analyst has questioned the price levels reached in the bidding for Hillshire Brands by Tyson and Pilgrim’s Pride. Tyson Foods submitted a binding offer to acquire Hillshire Brands for $63 per share in cash, in a bidding process that concluded June 8.
As Pilgrim’s Pride and Tyson Foods bid against one another to acquire Hillshire Brands, the CEO of Sanderson Farms exhibited unflappable resolution during a May 29 earnings conference call to build and grow his company through new plant construction and expansion of existing facilities.
Tyson Foods today upped the cash bid for acquisition of Hillshire Brands to $50 a share – $5 a share over Tuesday’s bid by Pilgrim’s Pride.With these two meat and poultry powerhouses now in a bidding war over Hillshire Brands, one wonders why their play for Hillshire did not come earlier.
Pilgrim’s Pride CEO Bill Lovette made the case on May 27 for a merger with Hillshire Brands, but is his acquisition target listening? One of the most compelling merger attempts involving poultry companies is now playing out between Pilgrim’s Pride and Hillshire Brands. It’s a three-way corporate romance (two of the companies in the triangle in the poultry business), and who knows what’s next.