3-12 news: Pilgrim's Pride rejects Foster Farms offer
In a release, Pilgrim’s Pride noted that selling the plant does not solve the current problem of an oversupply of low-value commodity chicken in the marketplace. If the Farmerville complex were sold, it would eventually mean that another facility elsewhere would have to be shut down.
Furthermore, while Pilgrim’s does not rule out a potential sale of the facility, it would have to be at a price that was much higher than the rejected offer. “It would essentially put Foster in business at a cost of entry of $20 million, well below the real cost and at a level with which neither Pilgrim’s Pride nor the rest of the industry could effectively compete,” the company said.