ConAgra Threatens to Drop Ralcorp Bid
ConAgra Threatens to Drop Ralcorp Bid
ConAgra Threatens to Drop Ralcorp Bid
ConAgra Foods reiterated its $94 per share, all-cash proposal to acquire Ralcorp Holdings, Inc., which Ralcorp previously rejected without dialogue with ConAgra Foods on August 12, 2011.
According to a ConAgra Foods press release, the company has heard from many of Ralcorp's shareholders who are urging Ralcorp to enter into negotiations with ConAgra Foods based on the strength of ConAgra Foods' compelling $94 per share all-cash proposal.
However, Ralcorp has continued to refuse ConAgra Foods' attempts to engage privately and hold a discussion regarding the potential value, strategic logic and certainty of its proposal. Instead, Ralcorp's Board has reiterated 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.
Should Ralcorp not enter into a constructive dialogue around the terms and conditions of ConAgra Foods' all-cash proposal for the entire business by 5:00 pm Eastern time on September 19, 2011, ConAgra Foods will withdraw its proposal.
Consequently, shares of Ralcorp Holdings Inc. slid today after ConAgra Foods Inc. threatened to withdraw its offer to buy the company, according to the Associated Press.
Ralcorp shares traded down 10 percent, or $8.35, to $76.79. Volume in morning trading approached 5 million shares, or more than six times the daily average.
Shares of its potential buyer, ConAgra, fell 68 cents, or 2.8 percent, to $23.38 as the broader markets edged lower.
Ralcorp has not yet issued a statement on this latest development.
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