Tomahawk, WI 05/29/2014 (Basicsmedia) – Pilgrim’s Pride Corporation (NASDAQ:PPC) made a revelation that stocks veered through and surged up! Poultry Producer PPC made a whopping $6.4 billion offer (in cash) to buy Hillshire Brands Co (NYSE:HSH), of Ball Park Hot-Dogs and Jimmy Dean Sausage fame! This deal is deemed to bolster the world’s second-largest producer and distributor of Chicken, make a mark in the frozen/chilled sections at the supermarkets worldwide!

JBS SA Shows Intent To Ameliorate Its Market Value!

JBS SA, a Brazilian meatpacking giant, that owns around 75% stake of PPC is on an aggressive spree, asserting to amass larger operating profits, thus bringing down their debt levels. PPC’s offer raked the deck, since it was revealed soon after Hillshire Brands Co (NYSE:HSH), took over Pinnacle Foods Inc. for a simmering $4.3 billion! Soon after the bid, Hillshire’s shares plummeted up almost 22%. PPC’s shares soared up by a meek 1.7%, while Pinnacle’s shares fell down by 5.4%!

Debts Keep Hillshire Alarmed!

Hillshire has trenched into a burden of $2.3 billion debts after the acquisition of Pinnacle Foods. PPC’s all-cash deal came as a respite to the company and its stakeholders; each Hillshire’s share shall be bought at $45.

Pilgrim’s Pride had been on the lookout for a possible buyout since February, but was rebuffed by Hillshire. Finally, deep in debts, Hillshire is still mulling the acceptance of the unsolicited bid;Pilgrim’s Pride Corporation (NASDAQ:PPC) has never lurched for this superior deal, it seems! What bothers Hillshire is the proposed merits of the Pinnacle Foods takeover and hence it has kept PPC on the hunt, though the balance hangs in PPC’s favor! This deal would help Pilgrim’s Pride emerge as the top two branded food companies across the World.

The Official Statements

In a statement, Hillshire Brands revealed circumspectly that the PPC proposal shall be thoroughly reviewed by independent legal fraternity and financial advisors. PPC’s CEO, Lovette said in a conference that Pilgrim’s Pride Corporation (NASDAQ:PPC) is optimistic and confident that Hillshire’s shareholders shall recognize the superiority of the cash-rich deal after pondering on all quarters, since the deal ensures substantial premium, immediate cash transfer and greater certainty for the Hillshire’s shares!

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