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Breaking News: ConAgra Makes $4.9 Billion Offer for Ralcorp

May 4, 2011
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Branded and private label food giant ConAgra is making a $4.9 billion offer to buy private label powerhouse Ralcorp, the Omaha-based company announced today.

 

As reported by PLBuyer Tuesday, St. Louis-based Ralcorp Sunday announced it had received and rejected an unsolicited takeover bid. Wall Street speculation centered around ConAgra as that bidder.

 

The latest ConAgra bid is for $86 a share. Ralcorp stock last week was trading in the $72-a-share range but spiked higher Friday on the takeover rumors.
Ralcorp issued a formal rejection of the bid Wednesday afternoon.
 

The deal would give ConAgra about $4 billion a year in private label sales, meaning about 25 percent of ConAgra total sales would be in the private label area.

 

“The proposed transaction would expand ConAgra Foods’ presence in the fast-growing private label segment and create the No. 3 U.S. packaged food company, focusing on delivering value to customers across both branded and private label,” ConAgra said in its statement.

 

ConAgra also revealed that its first offer to Ralcorp as for $82 in a combination of cash and stock for each share of Ralcorp stock. The new offer is an all-cash $86-a-share bid.

 

“We believe this all-cash proposal is highly attractive to Ralcrop’s shareholders and a transformational growth opportunity for both companies,” said Gary Rodkin, ConAgra foods’ CEO.

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