Excerpt from our One-Page WSJ Summary:

Pilgrim's Pride Sets Hostile Bid for Gold Kist

Summary: America's second largest poultry company, Pilgrim's Pride (PPC), has launched a hostile takeover bid for America's third largest poultry company, Gold Kist Inc. (GKIS). Word of the offer first became public several weeks back, when Gold Kist's shares were trading for significantly less than they are today. The tender, which is for $20 a share, caused prices to skyrocket as investors who hoped to turn a quick profit unloading Gold Kist shares came on board (shares closed at just under $21 in composite trading yesterday). Gold Kist management has advised its shareholders to temporarily reject Pilgrim's Pride's offer until October 12 when a decision on how they should proceed will be reached. The tender offer doesn't expire until October 27. Were the deal to go through, Pilgrim's Pride would be in position to give the nations top poultry producer, Tyson Foods (TSN) a run for their money. Also, Tyson would likely be control more than 30% of the U.S. poultry market making them a target for U.S. meat industry antitrust regulators.
Related links: Full WSJ article • SEC: 8-k filingPilgrim's Pride Trying to Pull a Fast One With Proposed Gold Kist AcquisitionPilgrim's Pride -- "The Sky is Falling!"The Bull Case for Tyson Foods

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