P. M. BRIEFING : Del. Judge OKs Holly Farms Buyout

A Delaware judge approved today a tentative agreement allowing Tyson Foods Inc. to buy Holly Farms Corp. for $1.4 billion, a lawyer for Tyson said.

The agreement, filed by lawyers for Tyson, Holly Farms and ConAgra Inc., requires approval of the Holly Farms board of directors, said Jim Blair, chief legal counsel for Tyson.

“It sets the stage for a three-party settlement. I’m cautiously optimistic,” Blair said.

Blair said the proposed agreement requires Tyson to pay ConAgra $50 million to withdraw from the bidding for Holly Farms. The buyout will cost Tyson about $1.4 billion, Blair said.

Tyson has been trying to buy Memphis-based Holly Farms since October while Holly Farms has been trying since November to merge with ConAgra, based in Omaha, Neb.