Tyson enters meat brawl with Hillshire bid
Source: AP-EXCITE
By MAE ANDERSON and CANDICE CHOI
NEW YORK (AP) — Hillshire Brands is at the center of a barnyard brawl.
Tyson Foods, the largest U.S. meat processor, on Thursday made a $6.2 billion offer for the maker Jimmy Dean sausages and Ball Park hot dogs, topping a bid made two days earlier by rival poultry producer Pilgrim's Pride. Based in Greeley, Colorado, Pilgrim's Pride is owned by Brazilian meat giant JBS.
The takeover bids for Hillshire by the two major meat processors are being driven by the desirability of brand-name processed products like Jimmy Dean breakfast sandwiches. The convenience foods are more profitable than fresh meat, such as chicken breasts, where there isn't as much wiggle room to pad prices.
Selling more types of products also would give the companies a buffer from volatile price swings of fresh meat. When beef prices rise and shoppers turn to other meats, the companies can sell more chicken or bacon, for example.
FULL story at link.
This combo made with file photos shows a package of frozen Tyson Chicken Nuggets, left, and a package of Hillshire Farm sausage, in Palo Alto, Calif. Two days after poultry producer Pilgrim{2019}s Pride made a $5.58 billion dollar bid for the maker of Ball Park hot dogs and Jimmy Dean sausages, Tyson Foods Co. on Thursday, May 29, 2014 sweetened the pot with a $6.2 billion offer. The deal sent Hillshire shares up 14 percent in premarket trading. (AP Photo/Paul Sakuma, File)
Read more: http://apnews.excite.com/article/20140529/tyson-hillshire_brands-8df84bcbf9.html
Edit: IF Tyson buys Hillshire I won't be eating Jimmy Dean sausage anymore.
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