Pilgrim's Pride hasn't given up on buying Hillshire just yet -- the company is increasing its offer.

The increase in the offer price is in response to Tyson Foods getting into the bidding war for Hillshire. Pilgrim's Pride said its offer is valued at $7.7 billion including debt. Tyson's offer to Hillshire is valued at about $6.8 billion, with $500 million in debt.

Tyson is aware that Pilgrim's Pride planned to increase its offer but didn't have a comment in response.

Both offers, made last week, would require Hillshire to terminate its pending deal to buy Pinnacle Foods. Hillshire announced May 12 that they planned to buy Pinnacle for $4.3 billion, excluding debt.

Pilgrim's Pride confirmed the offer of $55 per share to aquire Hillshire on Tuesday. That's a $10 per share increase of their original offer to Hillshire.

Some analysts say that Hillshire could double its frozen food sales by merging with Pinnacle, but Pilgrim's Pride and Tyson say the company would be better off merging with one of them.

"Pilgrim's is confident the transaction is strategically and financially compelling, and creates considerable value for the shareholders of both Pilgrim's and Hillshire," the poultry company said in a statement Tuesday morning, adding that it anticipates annual run-rate cost synergies of $300 million, which will come from operational efficiencies and growth opportunities from higher-margin branded products sold in North America and internationally.

Hillshire responded to both offers and said the company will have separate conversations with Pilgrim's Pride and Tyson but said they still want to continue their deal with Pinnacle.

"Hillshire Brands does not have the right to terminate the Pinnacle Foods merger agreement on the basis of either of these proposals or enter into an alternative acquisition agreement with either of these parties prior to termination," the company said in a statement Tuesday morning. "There can be no assurance that any transaction will result from these proposals."

The possible merger of Hillshire and one of these companies has been followed closely and investors and analysts will continue to monitor it.