Shares in Pilgrim's Pride soared 10% after Brazil's JBS poured cold water on an imminent takeover of the bankrupt poultry giant - but stopped short of a full denial.

The Brazilian meat giant said that there was "no transaction or firm commitment by the company, at this time" which would warrant a disclosure under stock exchange rules binding listed businesses to inform shareholders of significant developments.

However, the statement offered no denial that it was considering a takeover –for a sum reported by the Wall Street Journal at $2.5bn - of Pilgrim's Pride, once the pride of the US poultry sector, which was pushed by high feed prices coupled with lower demand for meat into bankruptcy last December.

Indeed, JBS said that "it routinely and constantly analyses investment opportunities for the expansion and organic growth of its activities".

It added that it would tell shareholders "of any act or fact involving any business opportunity, as soon as there are any developments that justify such disclosure".

Pilgrim's Pride shares jumped $0.55, or 10.7%, to $5.70 in over-the-counter trading on Thursday. The company was delisted from the New York Stock Exchange on entering bankruptcy.

US expansion 

The announcement follows a series of reports in Brazil's, and latterly America's, press that JBS is in talks over a deal which would transform it into a top-league player in the US.

JBS established a foothold in the US two years ago with the purchase of Swift & Co for $1.46bn, including debt, adding Smithfield Foods' Smithfield Beef business to its portfolio last year.

Plans to buy Kansas-based National Beef Packing Co last year were dropped after the deal was challenged on antitrust grounds by US authorities.

'New community of investors'

JBS is already attempting to increase its US profile through a listing of its US operations, which contributed more than three-quarters of group revenues in the April-to-June period.

"We are taking the first steps towards reaching out to a new community of investors," Joesley Mendonça Batista, the JBS chief executive, said in announcing the group's second quarter results.

"In the same manner that we did not deceive those that believed in us when we did our Brazilian [stockmarket flotation], we are totally committed towards providing a satisfactory return for those that will be with us during this new phase.