News

BULLETIN: RALCORP REJECTS NEW $94-A-SHARE CONAGRA OFFER

August 12, 2011
/ Print / Reprints /
ShareMore
/ Text Size+

St. Louis-based Ralcorp Holdings announced late Friday that it was rejecting a new ConAgra Foods  takeover bid of $94 a share in cash.
 
The bid had been made Thursday by ConAgra, Ralcorp said in its statement rejecting the offer.
 

ConAgra's bid is substantially higher than the $86 a share offer ConAgra announced May 4. Ralcorp had rejected that bid and has been announcing a series of moves this summer, such as the spin-off to shareholders of Post Foods, and the purchase of Sara Lee's private label refrigerated dough business, designed to push away ConAgra.

 

“Our board of directors has determined that the separation of Post Foods from Ralcorp will better allow each company to focus on strategies specific to their particular businesses, thereby unlocking additional significant value for our shareholders,” Ralcorp said in a letter sent to ConAgra’s CEO Gary Rodkin and signed by Ralcorp Chairman William Stiritz Friday. “We are firmly committed to this plan and therefore, we have unanimously determined that we have nothing further to discuss,” Stiritz told Rodkin in the letter which Ralcorp made public in a press release.

 

By spinning off Post, Ralcorp is jettisoning the unit with the highest margins in the company, according to Ralcorp earnings data released in early August. Ralcorp on Aug. 9 reported net earnings of $28.3 million for the quarter ended June 30, 2011, down 46.6 percent from the same period last year. One-time events were blamed for the drop.

 

Did you enjoy this article? Click here to subscribe to Private Label Buyer.

You must login or register in order to post a comment.

Multimedia

Videos

Image Galleries

July 2014 New Food Products

This month’s new food products include coffee, energy bars, healthy pizza for kids, specialty sauces, Greek yogurt dip, gelato, puffed grain snacks, snack seasonings, and much more.

Podcasts

Coming with a clear, comprehensive plan was the key to success for Longo Brothers Fruit Markets when the grocer decided to roll out a two-tier private label strategy, Jenny Longo and Robert Koss tell PLBuyer editor Chris Freeman in this podcast.

More Podcasts

Private Label Buyer Magazine

PLB July 2014 cover

July 2014

The July 2014 issue of Private Label Buyer includes articles on changing retail dynamics as well as category insights on store brand cosmetics and paper products. Check it out today!

Table Of Contents Subscribe

Innovation

Which private label category is currently seeing the most innovation?
View Results Poll Archive

Clear Seas Research

Clear Seas ResearchWith access to over one million professionals and more than 60 industry-specific publications,Clear Seas Research offers relevant insights from those who know your industry best. Let us customize a market research solution that exceeds your marketing goals.

PLB Marketplace

STAY CONNECTED

facebook_40px twitter_40px  youtube_40pxlinkedin_40pxgoogle+ icon 40px