Shares of Pinnacle were lower over 7.7%, and shares of Conagra were lower over 2.4% following the report.
People familiar with the matter have said that Conagra and Pinnacle held discussions weeks ago regarding a possible combination, but have yet to make plans to revisist the issue.
The two were unable to come to terms on a price for the deal as Pinnacle's expectations far exceeded what Conagra was willing to pay.
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