In August 2006, Pilgrim's Pride Corporation announced a hostile $20/share tender offer for Gold Kist, in a deal to create the largest chicken producer in the nation. While the CtW Investment Group believed the offer was inadequate and timed to take advantage of a general poultry market downswing, we were also concerned that Gold Kist executives and directors had an interest in maintaining the company's independence regardless of the offering price. Moreover, the company's takeover defenses could enable it to resist even an offer that fully valued the company.
We therefore urged Pilgrim's Pride to increase its offer, and urged the Gold Kist board to redeem its poison pill so that shareholders could decide for themselves.
Ultimately, Pilgrim's Pride increased its offer to $21.00, the Gold Kist board endorsed the offer, shareholders tendered 92 percent of Gold Kist's shares and the acquisition closed in January 2007.