After a bidding war of sorts began over Hillshire Brands, a winner has emerged. Tyson Foods has reached a "unilaterally binding offer" to purchase Hillshire for $8.55 billion, which includes debt.
Tyson beat out Pilgrim's Pride with an offer of $63 per share. Initially, Tyson had offered $50 per share and Pilgrim's Pride had offered $55.
The $63 per share is actually above Hillshire's closing price, which was $58.92 by end of day Friday. It was well below $40 when the merger talks began last month.
The merger talk actually began Hillshire announced they wanted to acquire Pinnacle Foods last month. However, this purchase will halt that deal as it currently stands. Tyson will assume Hillshire's $162 million breakup fee on top of the purchase price of $8.55 billion.