Pinnacle Foods lets Hillshire out of sale pact
Pinnacle Foods says it's scrapped its sale to Hillshire Brands, freeing Hillshire to be acquired by Tyson Foods.
Pinnacle Foods, which makes Birds Eye frozen vegetables, Duncan Hines cake mixes and Hungry-Man frozen dinners, says it will get a $163 million breakup payment from Hillshire. Pinnacle says it expects about $25 million in one-time costs connected to the scotched sale.
Hillshire Brands agreed to buy Pinnacle Foods for $4.23 billion in May. But Tyson and Pilgrim's Pride went after Hillshire two weeks later, and on June 9, Hillshire accepted Tyson's $7.75 billion offer.
The deal with Tyson is contingent on Hillshire's walking away from its offer for Pinnacle. Hillshire's board had withdrawn support for the move because it considered the offer from Tyson a superior proposal.
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