MINNEAPOLIS — After 2 1/2 months of just saying "no," the Pillsbury Co. finally had no choice but to agree to a sweetened $5.7-billion takeover bid from Britain's Grand Metropolitan PLC, securities analysts said today.
"They had no other direction to go. We knew that from day one," said Craig Carver, an analyst at Dain Bosworth Inc. in Minneapolis.
Two days after major legal setbacks, Pillsbury, a Minneapolis-based food and restaurant company, agreed to the takeover Sunday. Grand Met will purchase all outstanding shares of Pillsbury common stock for $66 per share in cash, $3 higher than Grand Met's previous best offer.
Most Jobs Secure
Besides benefiting Pillsbury shareholders, the Grand Met takeover should secure the jobs of most company employees, analysts said, but top Pillsbury executives probably should start looking elsewhere for work.