Tyson Foods Proposes All-Cash Bid for Hillshire Brands

Tyson Foods, Inc.

TSN

announced an all-cash bid of $50 per share to acquire Hillshire Brands

HSH

. This bid comes amid negotiations for a merger between Hillshire and Pinnacle Foods

as well as a previous bid from Pilgrim's Pride

PPC

to acquire Hillshire for $45 per share. Tyson highlighted a few key factors that make the deal attractive for the company including.

The combination would make Tyson a clear leader in the retail sale of prepared foods.
The deal would of "significant synergies".
Hillshire's strong presence in the breakfast category would allow Tyson to take advantage of a fast growing market inwhich it currently has little presence.

Tyson Foods' president and chief executive officer, Donnie Smith commented, "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." The proposed deal has unanimous support from Tyson's board but remains subject to the termination of the deal between Hillshire and Pinnacle. A full copy of the

press release

can be accessed on

Benzinga.com