Pilgrim's Pride is planning to raise its offer for Hillshire Brands a week after it first offered to buy the maker of Jimmy Dean Sausages in a $6.4 billion deal, The Wall Street Journal reported on Monday, citing people familiar with the matter.
Hillshire's shares were 2.8 percent higher in extended trading.
The new offer would value the meat company at $55 a share, according to one person, or more than $6.7 billion, the newspaper reported.
The new offer escalates a bidding war with Tyson Foods, which entered the race just two days after Pilgrim's offer.
Representatives at both Pilgrim's Pride and Hillshire did not reply to an email outside of regular business hours.