Today the news broke that Pilgrims Pride (PPC) has made a cash offer for Hillshire Brands (HSH). Currently (HSH) is up 22% pre-market! Pinnacle Foods inc (PF), which previously made a bid for Hillshire Brands, is currently down 6% pre-market as it looks the Pinnacle’s deal will fall through. Pilgrims Pride Corporation is up about 3.63% after it announced its plan to buy HSH with a cash offer. Hillshire Brands has been trading in a fifty two week range between $30.35-38.08. Hillshire is trading above a neutral cloud and should continue to move through the fifty two week highs. As news and uncertainty surrounding the potential buyout in Hillshire continues; implied volatility should continue to give the options a boost. It is unclear which company will ultimately buyout Hillshire Brands. Pinnacle could still make a counter offer in attempt to save the Hillshire deal. The bids for Hillshire Brands should continue to lift HSH stock bullishly.
