Pilgrim's Pride Concedes Battle for Hillshire10 June 2014
US - Pilgrim's Pride has withdrawn from the race with Tyson Foods to acquire meat processor, Hillshire Brands.
Pilgrim's Pride Corporation has withdrawn its proposal to acquire The Hillshire Brands Company. Pilgrim's decision to withdraw follows the announcement by Tyson Foods, Inc. on 9 June regarding Hillshire.
Bill Lovette, Pilgrim's Chief Executive Officer, commented: "As a disciplined acquirer, we determined that it was in the best interests of our shareholders not to increase our proposed price of $55.00 per share in cash.
"Pilgrim's will maintain its strong focus on operational excellence and shareholder value, while pursuing acquisition opportunities that advance our stated strategy. We appreciate the support of our shareholders, customers and team members throughout this process."
Pilgrim's confirms that it received fully committed financing to support its proposal from a consortium of leading banks: Wells Fargo Bank, N. A., Credit Suisse Securities (USA) LLC, Barclay's Bank PLC, Cooperative Centrale Raiffeisen-Boerenleenbank B.A. (Rabobank International), Bank of Montreal Capital Markets Corp. Under the terms of the commitments, which were substantially over-subscribed, the anticipated interest rate was approximately 4.1 per cent, with no maturities in the first seven years.
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