Tyson, which is based in Springdale, Arkansas, also noted the potential for cost savings by combining supply chains, transportation and other operations with Hillshire. But Smith said it was too early to comment on how many jobs could be cut as a result of the deal.
Tyson's offer will be in place until Dec. 12, the final termination date of the deal with Pinnacle, which is based in Parsippany, New Jersey.
Hillshire Brands noted it does not have the right to end the deal with Pinnacle on the basis of the Tyson offer, or enter into an agreement with Tyson before the deal is terminated.
"There can be no assurance that any transaction will result from the Tyson Foods offer," Hillshire said in a statement.
Hillshire, based in Chicago, had been trying to diversify its own portfolio by moving into other areas of the supermarket with the $4.23 billion acquisition of Pinnacle. But some investors questioned the wisdom of that deal, given the outdated image of many Pinnacle brands and the differences in the two companies' product portfolios.
The offer from Tyson is worth $7.75 billion based on Hillshire's 123 million shares outstanding. Tyson values the deal at $8.55 billion, including debt.
Tyson's shares ended down $2.62, or 6.5 percent, at $37.50 on Monday. Shares in Pilgrim's Pride, which is based in Greeley Colorado, ended down $1.76, or 6.7 percent, to $24.51.
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