Gold Kist stockholders tender shares, offer extended

Pilgrim's Pride reports that Gold Kist shareholders have shown â€œoverwhelming supportâ€ for the company's tender offer, with around 67 percent of shares being tendered in favour of the proposed transaction.

Pilgrim's Pride announced that as of the offer's closing date of 29 November, a total of 34,219,233 shares of Gold Kist common stock, or approximately 67 percent of Gold Kist's outstanding shares, have been tendered and not withdrawn

Pilgrim's Pride also reported that it has further extended the tender offer until 27 December 2006.

"We are very pleased that such a significant majority of outstanding Gold Kist shares have been tendered into our premium offer," said O B Goolsby Jr, Pilgrim's Pride president and chief executive officer.

"We believe this strong response is a clear indication that Gold Kist stockholders recognise the compelling value of our offer and want Gold Kist's board of directors to waive its takeover defenses, including its poison pill, so stockholders can receive their money as soon as possible."

In a statement, Pilgrim's Pride said it â€œexpected the Gold Kist directors to listen to the owners of the company and work with Pilgrim's Pride to complete this transaction quickly.â€

The day before the tender offer was due to expire, Gold Kist reiterated its strong advice to shareholders against tendering their stock, in the belief that the offer is inadequate.

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Editor WorldPoultry