Tyson Raises Bid to Be Sausage King to $7.7B

REPLAY VIDEO
Your next video will start in
Pause

Recommended Videos

  • Info

  • Comments

  • VIDEO TEXT

June 9 (Bloomberg) -- On today's "The Roundup," Trish Regan, Eric Chemi, Jeff McCacken and Jonathan Ferro wrap up the day’s top market stories on Bloomberg Television's "Street Smart." (Source: Bloomberg)

Raising the offer for hillshire briand.

Offering $63 per share.

It was through the $65 per share price.

Nor has it changed the agreement to buy pinnacle foods.

Dropping the pinnacle deal.

You do not even eat their food.

They need to wait on pinnacle.

Either way to agree they do not want to be acquired, will not be acquired and get 100 $63 million of the termination fee to walk away.

They will get money for the effort.

That deal will be done.

Then they can consummate the transaction and go on their merry way.

Should i be eating its?

Of course you should.

Packaged foods.

Hillshire was the one trying to buy a company and now they are the ones getting caught.

Funny how it changes in just a few weeks.

The only reason they're being bought probably is because they tried to buy someone.

They started it because they would have the shareholder vote.

That gave tyson and pilgrim's pride the option to come in.

Do you have any idea -- do you think they have any idea this would actually happen you go it depends on who you talk to.

Talk to people at tyson and pilgrim's pride they would say we made it pretty clear we wanted to buy you.

Their view of the world was we did not know you wanted to buy us.

I am not sure who to believe.

. feels like hillshire wanted to stay independent.

That would take them into a whole other direction.

Talking like duncan hines cake mix and frozen foods adding out of the meat business.

Expanding the grocery aisle if you will.

Pinnacle is an interesting character.

I do not know there is a natural buyer for them.

They do not really fit with anyone else all that well.

They are clearly on the block.

They did agree to sell themselves.

Now everyone knows what the price is.

If you are an employee of the company, how long do you want to work there.

They have felt like we will be sold so they have lost people.

Moving onto the next story.

Facebook and mark zuckerberg being sued for overpaying board members, an investor said the pogrom of letting the company directors that their co-pay waste corporate assets according to the lawsuit.

They paid nonemployee directors an average of 460 $1000 last year for the stock.

Exceeding industry peers by as much as 43%. good to be on facebook's board i guess.

The way the rules are set up, directors can pay themselves whatever they want in perpetuity up to two .5 million shares, which would be worth $100 billion.

It is a loophole in the rules.

Hundreds of millions of dollars they could pay for themselves.

Unless of course the stock price goes down.

Why is the loophole even their?

It is ridiculous.

That is why they are suing.

A very minor thing.

They are not contesting the point of how much they have been paid, but how much they could pay for the salary.

They have gotten a little more than everyone else.

They are certainly not getting $100 million.

One complaint is how much supervision.

So if you going to spend $19 million on whatsapp on the he is a board member, are they really going to block or stop?

Of good point.

He do not need to go back to carl icahn but this is a point he makes over and over again, the board has a vested interest and it is because they are collecting on one end of it.

To your point, not necessarily going to tell management to get there to incentivize to not do that.

A common complaint.

Google and facebook and a lot of these new tech companies have this.

How much control is there really of the owners?

And how much will the board control?

A big issue.

We will keep it on exactly that.

They are splitting the role of ceo and chairman.

It was bought by two public pension funds.

The limoneira vote is 53% against the role.

The company cofounder reed hastings.

Is this a big oversight issue?

How big of a corporate governance issue is this?

In the u.k. over 90% of countries have a split roll between chairman and ceo.

Over here we are under 50% but still way up compared to 12 years ago only 21%. definitely moving in that direction.

The data shows the companies that have split rolls, ceos make five million dollars less.

In some ways doesn't it make it more complicated because you have two people in charge?

Oversight.

This is what jamie dimon went through.

Jpmorgan at the end of the day they shut it down and let him keep both roles.

It is, over and over.

It is one of the things that shareholders will often go after.

It is interesting what they're doing with netflix.

To all extent what they have done has been extraordinary.

Look what they have done with "house of cards" and the other shows out there.

The man who runs the pensions in new york city and calpers have led the charge.

The point is it does not matter what the processes are, it is about principle so maybe we will see them attack other companies in the same way.

They have 73% voting for the split last year.

The result is much worse this year going in reed hastings favor.

Maybe he has nothing to worry about.

And fact we do.

Moving on to a trial that began in oakland, california today.

Chaplain -- layers are challenging the status.

This could lead to teen athletes getting paid.

The outcome will determine whether as -- whether the ncaa has to negotiate layers who want to be paid for appearing in tv games covering tuition and expenses.

These kids are out there playing.

Is him -- it is a multibillion dollar industry, give them a little something.

Besides the education, which in most cases is quite nearly worthless for a lot of them.

He said there were classes i wanted to take but could not take the kazaa had to play basketball first.

You are a full-time athlete if you play in the ncaa.

That is your job.

This goes on at the same time.

Northwestern you have football players trying to organize the union.

North carolina basketball were some of the players were saying i was not showing up for classes and being put on the dean's list for classes i did not attend.

You do sense that something big will change.

That the gig is up in terms of calling them immature athletes.

They are given room and board.

Forget it if you want to go buy a soda off campus or if you want to go to a movie.

God for bid you want to go home for thanksgiving or christmas.

I do want to give a perspective.

Back in the u.k. if you play sports for college, you will get about 20 students and will probably in a factory somewhere.

It just really is not that big.

It is so much bigger.

It blows my mind.

It is business.

They probably have to trade the athletes -- treat athletes the same way they would professionals as well.

Well put.

I thought you were going to disagree with me.

Thanks i am glad we are on the same side.

Trying to make the point if we start allowing players to get paid and the marching band for example.

We want to get paid.

Maybe they should.

It is a business.

Cbs is making money.

Coaches are making a ton of money.

Everyone involved should somehow get something out of it.

Does not have to be just about paying them.

The northwestern football players argue about health care.

When they get injured and lose the scholarship a do not often get health care coverage down the road.

You do not had to jump to paid professional athletes.

There are steps to create a little more fairness to put the health on the line.

Why not put a little free-market capitalism into this?

Thank you.

Great to have all of you here today.

The clinton foundation and

This text has been automatically generated. It may not be 100% accurate.

Advertisement

BTV Channel Finder

Channel_finder_loader

ZIP is required for U.S. locations

Bloomberg Television in   change