Pilgrim's Pride extends tender offer
Pilgrim's Pride has announced that it has extended its
tender offer to purchase all of the outstanding shares of Gold Kist common stock
for $20.00 per share in cash.
The offer and withdrawal rights, which were scheduled to expire at
midnight, New York City Time, on Friday 27 October 2006, have been extended
until 5pm, New York City Time 29 November 2006, unless further extended.
asserts that the offered share price represents a 57 percent premium
on Gold Kist's implied share prices, and a 55 percent premium on share prices
the day before their original offer was made. Gold Kist
however, have rejected
the offer as inadequate
As of midnight on October 27, 2006, a total of approximately 16.84 million
shares of Gold Kist common stock, or approximately 33% of Gold Kist's
outstanding shares, had been tendered and not withdrawn.
As previously reported, on 29 September Pilgrim's
Pride approached shareholders directly
with its tender offer to purchase all
of the outstanding shares of Gold Kist common stock for $20 per share in cash.
The transaction is valued at approximately $1 billion, plus the assumption of
approximately $144 million of Gold Kist's debt.
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