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Pilgrim's Pride Fights off Take-Over Attempt

by 5m Editor
11 September 2009, at 9:57am

US - Pilgrim's Pride has asked the court for an extension, allowing it more time to file a bankruptcy plan without 'interference' from competitors.

Pilgrim's Pride has asked the bankruptcy court for an additional three months to 31 December, saying the extension will increase the likelihood of greater distribution for its creditors, according to Morning News.

This filing request comes on the heels of rumours and recent news reports that indicate Pilgrim's is negotiating with Brazilian meat company, JBS, for a possible merger or acquisition.

Both JBS and Pilgrim's have denied any such agreement is under way.

Pilgrim's Pride said the company expects to emerge from Chapter 11 bankruptcy by the end of the year and has recently returned to profits amid lower grain costs and plant reductions.

There was no mention of JBS in Pilgrim's court filing last week.

Morning News reports Steve Kay, publisher of Cattle Buyers Weekly, saying any such merger between Pilgrim's and JBS would be a surprise given that Pilgrim's has already weathered the worst of the poultry downturn and JBS has no expertise in poultry.

He sees the venture as an unlikely marriage saying the companies are not located in close proximity and would not benefit from sharing transportation costs like the Tyson Foods merger with IBP Inc. in 2001.

But should JBS successfully acquire Texas-based Pilgrim's the combined sales would be $23.9 billion, slightly behind top-ranked Tyson's $26.9 billion.

Further Reading

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