|Post Brand Cereal|
Ralcorp has rejected ConAgra's advances three times already, most recently turning down an offer for $94 a share in August. That bid was up from $86 a share; the original bid was for $82.
Ralcorp instead has touted its plan to spin off its Post Cereals unit as one that offered superior value to shareholders. After ConAgra was rejected by Ralcorp three times, some analysts speculated ConAgra might go ahead and turn its bid hostile. ConAgra had said it was considering its options after the latest rejection.Late Tuesday, ConAgra said Ralcorp's board was "singularly focused" on its Post spinoff, refusing any attempts at M&A negotiations. ConAgra argued the "superior value and certainty" of its acquisition offer. ConAgra maintained that its offer represented a 44% premium to Ralcorp's March 21 closing price, the day before it made its initial bid; the maker of Chef Boyardee, Healthy Choice and Hebrew National food brands also said its bid was 32% higher than Ralcorp's all-time closing high. On Tuesday, Ralcorp shares closed up at $85.14, giving the $94 bid a 10% premium. Ralcorp shares were 10.3% lower in premarket trading on Wednesday, while ConAgra was up by 0.5% ahead of the opening bell.
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