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Sanderson Farms consider a sale as chicken prices rise due to increased demand, so a Report from the Wall Street Journal.

Sanderson Farms’ shares closed at $ 166.58 on Monday, up 6.96% from talks of a possible deal. In expanded trading, the stock rose more than 9% and increased its market cap to more than $ 3.72 billion. Every buyer would have to pay a premium on top of this price.

Citing people familiar with the matter, the newspaper said Sanderson hired Centerview Partners for advice after piquing the interest of potential buyers, including agricultural investment firm Continental Grain. The Journal said the talks between the parties may not result in a sale.

Has a combination of strong demand and labor shortage have driven up poultry prices, and further increases could still be imminent. Chicken wing prices, for example, averaged $ 2.72 a pound last week U.S. Department of Agriculture, that’s almost 20 cents more than in the same week last year.

Sanderson is the third largest food processor in the US in an area covered by Tyson Foods.

According to the report, a deal with Continental would create a company that produces about 15% of the country’s chicken. The newly founded company would only barely cover that Pilgrim pride, which has a market share of 16%, the report said.

Continental owns Wayne Farms, a small chicken processor, and once hoped to go public and act as a consolidator in the industry.

When reached by CNBC, Sanderson declined to comment.

Read the full report in the Wall Street Journal.