Poultry producer Pilgrim's Pride on Tuesday offered to pay cash for Hillshire Brands Co. in a deal valued at $6.4 billion that would nix Hillshire's pending acquisition of
Pilgrim's estimates that if Hillshire accepts its bid, the combined "protein-focused" company would have annual sales of $12.4 billion.
Pilgrim's is offering to pay $45 a share, which represents a 22% premium over its Friday closing price of $37.02. Including assumption of debt, the proposal values Hillshire at $6.4 billion, Pilgrim's said.
Hillshire shares were trading Tuesday morning at $45.21, up $8.19, or 22%. Pilgrim's Pride shares were up 88 cents, or 3.5%, to $25.98.