Poultry War Threat To Pecking Order Of US Food Producers

US - Pilgrim’s Pride, the second-largest US poultry producer, made a $1.02bn hostile bid last week for Gold Kist, the third-largest producer, in a move that could have developed into a game of chicken.
calendar icon 28 August 2006
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But Gold Kist swerved first. It announced it would not fight the unsolicited offer but would instead examine it carefully. It was an embarrassing move by Gold Kist and it let its aggressive suitor know it. The board said it was “surprised and disappointed” that Pilgrim’s Pride had made the hostile bid public.

Gold Kist also said it had rebuffed two earlier bids from Pilgrim’s Pride since February. A third proposal, made in June, was also turned down but Gold Kist agreed to quietly meet with Pilgrim’s Pride to discuss it.

“In July we met with Pilgrim’s to explore their unsolicited proposal, and have expressed our willingness to consider limited reciprocal due diligence subject to an appropriate confidentiality agreement,” Gold Kist said. “We were therefore surprised and disappointed that Pilgrim’s chose to make public its unsolicited proposal.”

Source: The Business
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