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Hillshire withdraws recommendation for Pinnacle deal

Hillshire Brands said it will withdraw its recommendation to its shareholders to vote for its acquisition of Pinnacle Foods, following a Tyson Foods bid to buy Hillshire.

Tyson, the largest U.S. meat processor, last week said it would buy Hillshire for $63 per share, valuing the company at $8.55 billion.

Read MoreTyson is said to win battle for Hillshire Brands

Hillshire said it does not have the right to terminate the merger agreement with Pinnacle Foods on the basis of the Tyson Foods offer.

Tyson Food and Hillshire Brands food products
Getty Images
Tyson Food and Hillshire Brands food products

Hillshire expects to hold its stockholder meeting as early as August.

The company will have the right to end the Pinnacle merger on Dec. 12 regardless of whether a shareholder vote takes place.

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If Pinnacle Foods terminates the deal before Hillshire stockholders vote, Pinnacle may be entitled to a termination fee of $163 million.

By Reuters

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