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.

Pilgrim's Pride 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 board members, 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shares of Gold Kist common stock, or approximately 33% of Gold Kist's outstanding shares, had been tendered and not withdrawn.

Pilgrim's Pride approached Gold Kist with a public letter to its board members in August. Gold Kist was reportedly surprised and disappointed by the public approach, which was made after board negotiations were unable to reach a conclusion.

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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Editor WorldPoultry