ConAgra to Buy Ralcorp for $90 a Share (Update 1)
ConAgra to buy Ralcorp for $90 a share in cash.
Updated with further terms of the ConAgra/Ralcorp merger agreement
NEW YORK (
) --
ConAgra Foods
(CAG) - Get Report
said Tuesday it agreed to buy
Ralcorp Holdings
(RAH)
for $90 a share in cash, or about $5 billion.
The purchase price is a 28.2% premium to Ralcorp's closing price Monday of $70.23.
Ralcorp shares were soaring in premarket trading Tuesday, up 26.7% to $88.99.
The total value of the deal, including assumed debt, is $6.8 billion.
A combined ConAgra/Ralcorp will have annual sales of about $18 billion, the companies said in a statement Tuesday.
-- Written by Joseph Woelfel
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