Growing global appetite for meat has increased merger and acquisition activity in the industry.
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Pilgrim’s Pride Corp, the second largest U.S. chicken processor, raised its offer for Hillshire Brands Co, escalating a bidding war with Tyson Foods Inc for the maker of Jimmy Dean sausages.
Hillshire’s shares rose 9 percent to $58.50 in premarket trading, after Pilgrim’s Pride said it raised its offer to $55 per share in cash from $45.
Tyson Foods, the world’s second largest meat processor after Brazil’s JBS SA, has offered $50 per share in cash for Hillshire. JBS owns about 75 percent of Pilgrim’s Pride.
Hillshire said on Tuesday it would “provide information” to both bidders and conduct talks with them.