July 14, 2011
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Ralcorp plans to spin off its Post Foods unit to shareholders in an apparent move to thwart a take-over bid by ConAgra Foods.


Ralcorp plans to spin off its Post Foods unit to shareholders in an apparent move to thwart a take-over bid by ConAgra Foods.


The spinoff would give Ralcorp proceeds of $1 billion with which to “aggressively pursue private brand acquisitions,” Ralcorp said in a corporate statement on the spinoff. Post will issue from $1.1 billion to $1.2 billion in debt to finance the spinoff, Ralcorp says.
"The Board has been carefully evaluating tax-free separation alternatives for some time," said William P. Stiritz, chairman of Ralcorp. "We firmly believe the separation of Post Foods from Ralcorp by way of a tax-free spin-off will unlock significant value for our shareholders. As independent companies, both Ralcorp and Post Foods will be better positioned to focus on strategies specific to their particular businesses, thereby improving the opportunities to deliver increasing shareholder value."

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