ConAgra Foods has withdrawn its US$5.18bn bid for Ralcorp Holdings after its takeover target refused to hold talks on the offer.
The US food maker said yesterday (19 September) that it had taken its US$94-a-share offer off the table following what it described as Ralcorp’s “failure to enter into a constructive dialogue” on the proposal.
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ConAgra had given Ralcorp until 5pm ET yesterday to hold discussions. However, Ralcorp, which had already rejected three offers from ConAgra, including the latest bid, issued a statement ahead of the deadline to detail its determination to stay independent.
Ralcorp is looking to split itself in two and has consistently argued that the move would provide more value to shareholders than ConAgra’s bids.
The company wants to create two companies, one focusing on its private-label operations and the other centred on branded cereal arm Post Foods.
However, some Ralcorp shareholders have indicated their unhappiness at the company’s refusal to hold talks with ConAgra.
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By GlobalDataRalcorp’s shares closed down 1.26% at $75.23 in New York yesterday.
