Tyson Foods Welcomes Hillshire Withdrawal Of Recommendation For Pinnacle Merger

(RTTNews) - Tyson Foods Inc. (TSN) welcomed Hillshire Brands Co. (HSH) announcement that its Board withdrew its recommendation in favor of the May 12, 2014 merger agreement with Pinnacle Foods (PF).

Tyson Foods said that based on its understanding of the Pinnacle Agreement, Pinnacle Foods may now immediately terminate this agreement and accept a $163 million fee, or it may insist Hillshire Brands conduct a shareholder meeting to vote on a transaction that the Hillshire Brands Board has now recommended against.

"We believe our offer to acquire Hillshire Brands for $63 per share in cash is a superior proposal for Hillshire Brands shareholders," said Donnie Smith, president and CEO of Tyson Foods.

Tyson Foods said it hopes Pinnacle Foods will promptly accept the termination fee and not delay the ability of Hillshire Brands' shareholders to benefit from Tyson Foods' superior offer.

Earlier today, Hillshire Brands announced that its board has unanimously determined to withdraw its recommendation of the pending acquisition of Pinnacle Foods.