Food sector on watch after mega-merger

|By:, SA News Editor

A $6.4B offer by Pilgrim Pride's (PPC) to buy Hillshire Brands (HSH) could rattle the food sector.

For starters, the deal could spoil Hillshire's offer on the table to buy Pinnacle Foods (PF).

The quick analyst take on a PPC-HSH combination is favorable with the companies focused in different areas (chicken vs. packaged meat) which could lead to easy access to new distribution channels.

Premarket: HSH +22.9% to $45.49, PF -5.3% to $31.50.

Also on merger watch in the food sector: THS, SJM, GIS, KRFT, CPB, ADM, BGS, RAH, HAIN, K CAG