Pilgrim's Pride rejects US$60 million offer for Farmerville plant

Pilgrim's Pride has rejected the latest purchase offer for its Farmerville plant, a combined US$60 million from Foster Farms and the state of Louisiana.

Pilgrim's Pride rejected the offer on the basis that it represents a significant financial loss for the company. The company said it has given Louisiana Governor Bobby Jindal the acceptable price, but would not reveal the amount.

The company said the given price would be only enough to prevent the company from taking a loss on the sale.

Chief executive Don Jackson reiterated that the complex would only be sold for a price that prevents a loss.

Jackson said the figure given to Jindal is a heavily discounted price for a potentially valuable asset, considering the invested capital and current debt for the facility.

As part of the proposal, the company would continue operating the further-processing portion of the plant with financial assistance from the state to help offset some additional costs the company would incur by operating the plant.

If certain economic conditions occur, the plant would be fully reopened, Jackson said.