U.S.-based chicken group, Pilgrim’s Pride has raised its takeover bid for Hillshire Brands by $1.3 billion to a new bid of $7.7 billion including debt in order to outbid rival Tyson Foods. The new offer is equal to $55 per share, $10 per share above its original bid and $5 per share above Tyson Foods’ recent bid. Pilgrim’s Pride states that a merger of itself with Hillshire Brands would result in operational savings of $300 million annually from eliminating redundant functions and would provide significant opportunities for growth in the branded food markets of both the North American market and abroad. Originally, Pilgrim’s Pride’s offer to Hillshire Brands was contingent upon that company abandoning its planned takeover of Pinnacle Foods however Hillshire is continuing talks with Pinnacle and has stated that it does not “have the right to terminate” its merger with Pinnacle.
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