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Stock Market & Financial Investment News

News Breaks
June 9, 2014
10:27 EDTHSH, TSN, PPC, PFTyson knocks Pilgrim's out of Hillshire bidding with new offer
Shares of food processor and distributor Hillshire Brands (HSH) are rising after Tyson Foods (TSN) submitted an increased offer to acquire the company, prompting rival Pilgrim's Pride (PPC) to withdraw its own takeover proposal. WHAT'S NEW: Tyson submitted a unilaterally binding offer to acquire all outstanding shares of Hillshire for a price of $63 per share in cash. The offer was subject to Hillshire being released from its existing agreement to acquire Pinnacle Foods (PF) in accordance with the terms. The all-cash transaction is valued at approximately $8.55B including Hillshire's outstanding net debt and represented a multiple of 16.7x trailing 12 months adjusted EBITDA or 10.5x including $300M in synergies. Tyson said it expects that the proposed transaction would be marginally accretive to EPS on a cash basis in the first full fiscal year after completion and substantially accretive thereafter. The offer was unanimously approved by Tyson's board. Hillshire responded to Tyson by confirming that it received its competitor's offer, but the company's board has not approved the offer, has not changed its recommendation regarding the Pinnacle merger and isn't making any recommendation with respect to the Tyson offer. Hillshire said it does not have the right to terminate the merger pact with Pinnacle on the basis of the Tyson offer or enter into an agreement with Tyson prior to the termination. In response to Tyson's announcement, Pilgrim's Pride withdrew it's proposal to acquire Hillshire Brands and said it realized that it was in the best interest of its shareholders not to increase its proposed price of $55.00 per share in cash for Hillshire. WHAT'S NOTABLE: During Tyson's conference call which discussed its offer to acquire Hillshire, the company said the deal would double prepared foods sales from 18% of revenue and quadruple operating income from prepared foods to 20% from 5%. Tyson believes it can realize significant annual synergies in excess of $300M by year three and has been thinking for "a lot of time" about Hillshire. Tyson expects the combined company's weighted average interest cost to be roughly 3.5% and noted that ROIC would drop below 20% in the first year, but says the company is "committed" to a ROIC target of 20%. Tyson foresees EPS to return to an annual growth rate in excess of 10%. Tyson confirmed that Hillshire is not allowed to accept the offer until the deal with Pinnacle is terminated. PRICE ACTION: During morning trading, shares of Hillshire Brands rose 5% to $61.85. Meanwhile, Pinnacle Foods rose 0.8% to $31.81, Tyson Foods fell 5% to $38.08, and Pilgrim's Pride fell 6.4% to $24.60.
News For HSH;TSN;PPC;PF From The Last 14 Days
Check below for free stories on HSH;TSN;PPC;PF the last two weeks.
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August 28, 2014
16:33 EDTTSNTyson Food, Hillshire complete merger, sees FY15 synergy savings of $225M
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09:04 EDTTSN, HSHTyson Foods sees completing Hillshire merger later today
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August 27, 2014
16:53 EDTTSN, HSHTyson, Hillshire announce expiration of the HSR waiting period
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14:39 EDTHSH, TSNTyson, Hillshire Brands reach agreement with Department of Justice
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14:25 EDTHSH, TSNDOJ requires Tyson to divest sow purchasing business in merger settlement
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14:19 EDTTSN, HSHHillshire rebounds, back to flat after report of merger deal with DOJ
Shares of Tyson Foods (TSN), which had dropped briefly, are also back to being nearly unchanged.
14:17 EDTHSH, TSNTyson Foods, Hillshire enter settlement with U.S. over merger, Bloomberg says
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14:14 EDTHSHHillshire Brands drops 3% to $61.05
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August 26, 2014
13:03 EDTTSN, HSHTyson Foods, Hillshire Brands announce extension of tender offer
Tyson Foods (TSN) and The Hillshire Brands Company (HSH) announced that Tyson has extended the offering period of its previously announced tender offer to purchase all of the outstanding shares of common stock of Hillshire Brands for $63.00 per share in cash, without interest, subject to any withholding of taxes required by applicable law and upon the terms and subject to the conditions set forth in the Offer to Purchase dated July 16. Pursuant to the Agreement and Plan of Merger, dated July 1, by and among Tyson, HMB Holdings and Hillshire Brands, the Offer, which was previously scheduled to expire at 12:00 midnight, New York City time, at the end of Tuesday, August 26, has been extended until 12:00 midnight, New York City time, on Wednesday, August 27, unless it is extended further under the circumstances set forth in the Merger Agreement. All terms and conditions of the Offer shall remain unchanged during the extended period.
12:09 EDTTSN, PPCSanderson Farms tumbles after Q3 results fall short of expectations
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August 21, 2014
12:24 EDTTSNHormel hits 52-week high after Q3 results beat estimates
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August 19, 2014
18:19 EDTTSN, HSHTyson, Hillshire announce extension of tender offer for shares of Hillshire
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