Offer inadequate, let's stick with our plan: Gold Kist

Gold Kist board members have unanimously determined that the unsolicited offer made by Pilgrim's Pride is inadequate, and have reiterated their commitment to the company's strategic plan in a letter to shareholders.

In the letter, John Bekkers, president and chief executive officer of Gold Kist, and A D Frazier Jr, chairman of Gold Kist, said executing the company's own strategic plan will bring more value to shareholders than the current offer from Pilgrim's Pride.

The $20 per share offer was originally made at the end of September, and recently the tender offer was extended until 29 November.

"Your board is committed to fulfilling its duties to you as stockholders and is always committed to maximizing stockholder value," Gold Kist said in the letter. "We firmly believe that the best course of action at this time is to continue to execute our strategic business plan to build value in the company."

The letter detailed the plans in place to increase stockholder value, including the expansion of value-added products, opening of plant expansions, increase in innovation and chicken exportation.

"Gold Kist's recent initiatives to expand our private label and value-added businesses and to improve operating efficiencies, among many other aspects of our long-term strategy, are a testimony to our determination to grow the business and the value of your company," Gold Kist said.

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Editor WorldPoultry