September 21, 2006

Gold Kist hires the big guns to ward off takeover

Gold Kist has hired a well-known Wall Street firm as it batten down the hatches and prepare for a proxy battle to ward off a potential takeover from Pittsburg, Tex., based Pilgrim's Pride.

The Atlanta, Ga., based Gold Kist announced last week it retained Gleacher Partners to help review its "strategic plans and potential alternatives to maximise shareholder value."

Pilgrim's Pride made an unsolicited offer to buy Gold Kist last month for about US$1 billion, or US$20 a share in cash.

Gold Kist had said it would consider the offer back then. It rejected Pilgrim's Pride overtures two years ago.

Gold Kist also is being advised by other big names such as Merrill Lynch & Co.; the Atlanta-based law firm of Alston & Bird; and Richards, Layton & Finger, Delaware's largest law firm.