Pinnacle Foods May Soon Be Acquired by Conagra Brands

According to sources close to the situation who spoke to CNBC, Conagra Brands, the owner of Health Choice meals, may be in advanced discussions to buy Pinnacle Foods.

The deal could be announced sometime this week according to the unidentified sources and if it happens, would create the second biggest frozen food company in the U.S. with the first being Nestle.

Jana Partners, who has about a 9% stake in the company, has said that it would talk to the company about a sale.

There were no financial terms revealed but the sources have said the acquisition would be financed in part cash and part stock.

Both companies have declined to comment on the matter and the sources have also said the deal may not happen.

Disclaimer: We have no position in PINNACLE FOODS INC. (NYSE: PF) nor Conagra Brands Inc. (NYSE: CAG) and have not been compensated for this article.