Hillshire Brands may have to pay Tyson Foods a US$261.3M break fee if it agrees to Tyson's acquisition proposal and then rejects it for a higher bid

NEW YORK , June 11, 2014 () – Hillshire Brands Co., the target of a takeover offer from Tyson Foods Inc., may have to pay a $261.3 million break fee if it agrees to the deal and then rejects it for a higher bid from elsewhere.

Under certain circumstances, Chicago-based Hillshire might also have to reimburse Tyson for $163 million for the termination of Hillshire’s planned acquisition of Pinnacle Foods Inc.
Tyson, which is based in Springdale, Arkansas, commented on the potential fees in a filing today.

To contact the reporter on this story: Simon Casey in New York at scasey4@bloomberg.net To contact the editors responsible for this story: Simon Casey at scasey4@bloomberg.net Tina Davis

* All content is copyrighted by Industry Intelligence, or the original respective author or source. You may not recirculate, redistrubte or publish the analysis and presentation included in the service without Industry Intelligence's prior written consent. Please review our terms of use.