Hillshire Could Pay Tyson $261 Million in Event It Rejects Deal

Hillshire Brands Co., the target of a takeover offer from Tyson Foods Inc. (TSN), 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

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