Tyson Foods has reportedly raised its bid for Hillshire Brands, outbidding rival Pilgrim’s Pride in the battle to take control of the Jimmy Dean maker.
According to Bloomberg, which cited sources with knowledge of the matter, negotiations between Hillshire and its suitors over the weekend saw Hillshire reach an agreement to endorse an improved offer from Tyson and abandon its previously-agreed merger with Pinnacle Foods.
If Hillshire does back out of the Pinnacle deal the group will be required to pay a US$163m breakup fee.
Pilgrim’s Pride entered these negotiations as the highest bidder – with an offer of US$55 a share for the business. Tyson had issued a bid of $50 per share. Hillshire shares are currently trading at $58.92.
Tyson, Hillshire and Pilgrim’s did not immediately respond to requests for comment.