Pinnacle Foods Inc. opted to receive a $163 million breakup fee by terminating an agreement to be taken over by Hillshire Brands Co., clearing the way for its would-be acquirer to be bought out by Tyson Foods Inc.

Proceeds from the payment will be used to reduce debt, which will drop interest expense for the year to less than an original forecast of $100 million, Parsippany, New Jersey-based Pinnacle said in a statement yesterday. The company repeated its guidance for per-share profit of $1.70 to $1.75 this year.

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