Ralcorp Holdings once again rejects ConAgra's sweetened takeover offer
13 Aug 2011
US-based private-label food maker Ralcorp Holdings Inc yesterday rejected rival ConAgra's latest sweetened bid of $94 a share and said that it will go ahead with its plan of splitting the company.
St Louis, Missouri-based Ralcorp rejected ConAgra's latest offer of $94 a share or $5.17 billion bid saying that the proposed takeover is not in the best interest for the company or its shareholders.
William Stiritz, chairman of Ralcorp said that the board ''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.''
''We are firmly committed to this plan and therefore, we have unanimously determined that we have nothing further to discuss,'' he added.
In March 2011, Omaha-based packaged foods company ConAgra Foods made an unsolicited offer to buy Ralcorp, and in May sweetened its bid to $86 a share, or $4.9 billion.
Rejecting the bid as too low, Ralcorp adopted defensive measures by announcing that it plans to spin off its Post Foods cereal business unit, the most recognisable cereal brands in the US, which also includes Honey Bunches of Oats, Grape-Nuts, Raisin Bran, Golden Crisp, Pebbles and Waffle Crisp, as a standalone company from its core private label business.