Under the deal, Ralcorp will acquire all outstanding shares of American Italian Pasta for $53 a share in cash. This is a 27% premium to American Italian Pasta's closing price of $41.73 on Friday, a rise of 6.7%.
The transaction is expected to close during Ralcorp's fourth fiscal quarter ending September 30. Upon the completion of the transaction, American Italian Pasta will become a wholly-owned subsidiary of Ralcorp and operate as an independent division. The combination is expected to result in an earnings-per-share increase of at least 50 cents for fiscal 2010.
-- Reported by Andrea Tse in New York
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