(Reuters) – Pilgrim’s Pride Corp, the second largest U.S. chicken processor, raised its offer for Hillshire Brands Co, escalating a bidding war with Tyson Foods Inc for the maker of Jimmy Dean sausages.
Hillshire’s shares rose 9 percent at $58.50 in premarket trading, after Pilgrim’s Pride said it raised its offer to $55 per share in cash from $45.
Tyson Foods, the largest U.S. meat processor, has offered $50 per share in cash.
Hillshire said it would “provide information” to both bidders and conduct talks with them.
Pilgrim’s Pride said its offer valued Hillshire at $7.7 billion, including debt. Tyson’s offer values Hillshire at $6.8 billion, including $500 million in debt.
The two companies offered to buy Hillshire last week.
