Gold Kist Considering Pilgrim's Pride Buyout Offer

AUGUST 21, 2006 - Posted at 3:50 p.m. CDT

ATLANTA (AP) - Two of Tyson Foods' top competitors are talking about getting together, though the Number Three chicken producer, Gold Kist, says it wants to stay independent.  But the company's board said today it would consider the latest offer from Number Two chicken producer Pilgrim's Pride.

Gold Kist said in a statement that Pilgrim's Pride had made several unsolicited offers this year to buy the company.  Gold Kist rejected the offers each time, with the most recent rejection in July.  On Friday, Pilgrim's Pride made public its latest offer of $20 per share.  That would be a 55 percent premium over Gold Kists's closing stock price Friday of $12.93 cents per share.

Gold Kist also said it plans to go ahead with strategies to expand its business after weathering a recent downturn in poultry prices.

(Copyright 2006 by The Associated Press.  All Rights Reserved.)