Tyson Foods, Inc. today announced that it proposes to acquire The Hillshire Brands Co. for $6.8 billion, or $50 per share in cash.
The Tyson offer comes two days after Pilgrim's pride offered to buy Hillsire for $5.6 billion, or $45 per share. Tyson's offer is a 35 percent premium to what Hillshire was trading at before the company announced its intention to buy Pinnacle Foods Inc.
"We believe that there is a strong strategic, financial and operational rationale for the combination of Tyson and Hillshire," Tyson Foods CEO Donnie Smith said "Our proposal provides Hillshire shareholders with an immediate cash premium for their shares that we believe is both greater and more certain than what can be attained in the near term by the Company either on a standalone basis or in combination with any other food processing company."
Dave Flessner is the business editor for the Times Free Press. A journalist for 35 years, Dave has been business editor and projects editor for the Chattanooga Times Free Press, city editor for The Chattanooga Times, business and county reporter for the Chattanooga Times, correspondent for the Lansing State Journal and Ingham County News in Michigan, staff writer for the Hastings Daily Tribune in Nebraska, and news director for WCBN-FM in Michigan. Dave, a native ...