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Sanderson Rumoured to be Eyeing Pilgrim's Pride

by 5m Editor
14 October 2008, at 9:51am

US - There is speculation that Sanderson might be interested in purchasing all or part of Pilgrim's Pride.

As Pilgrim's Pride stock continued its decline last week, speculation arose that Sanderson Farms might buy all or part of the ailing Pittsburg, Texas-based poultry producer, according to Florida-based Suwannee Democrat.

Sanderson - based in Laurel, Mississippi - filed papers with the Securities and Exchange Commission on 9 October that could open the way for future acquisitions. The company has not commented further on its plans.

Pilgrim's stock dipped to a low of $2.10 on 6 October recovered slightly and was trading at $4.03 on 13 October, down from a 52-week high of $35.98.

The poultry industry has suffered due to the rising costs of animal feed and an oversupply of product, which has kept prices low.

The local Pilgrim's Pride plant is the largest employer in Suwannee County with more than 1,300 workers, reports Suwannee Democrat.

5m Editor