Hillshire Brands Board Authorizes Talks With Pilgrim's Pride And Tyson Foods

(RTTNews) - Hillshire Brands Co. (HSH) announced Tuesday that its board has made the requisite determination under Hillshire Brands' merger agreement with Pinnacle Foods Inc. (PF) to provide information to, and conduct separate discussions with Pilgrim's Pride Corp.(PPC) and Tyson Foods Inc. (TSN) with regard to their recent unsolicited proposals.

On May 27, Pilgrim's Pride proposed to acquire all of Hillshire Brands' outstanding common stock for $45.00 per share in cash. On June 1, Pilgrim's Pride increased its offer to $55.00 per share in cash.

On May 29, Tyson Foods announced its proposal to acquire Hillshire Brands for $50.00 per share in cash.

Hillshire Brands is party to a merger agreement with Pinnacle Foods pursuant to which Hillshire Brands agreed to acquire Pinnacle Foods for per share consideration of $18.00 in cash and 0.5 shares of Hillshire Brands common stock.

Both the Pilgrim's Pride and Tyson Foods proposals are conditioned on the termination of the Pinnacle Foods merger agreement.

Hillshire Brands said it does not have the right to terminate the Pinnacle Foods merger agreement on the basis of either of these proposals or enter into an alternative acquisition agreement with either of these parties prior to termination.

Hillshire Brands noted that its board is not withdrawing, modifying, withholding or qualifying its recommendation with respect to the Pinnacle merger agreement and the merger, or proposing to do so, and is not making any recommendation with respect to either the Pilgrim's Pride or Tyson Foods proposals.