US food maker Ralcorp Holdings has rejected the latest share cash offer from ConAgra Foods.
Ralcorp rejected ConAgra’s latest US$94-a-share offer on Friday (12 August), claiming that it was “not in the best interests of the company and its shareholders”.
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ConAgra first lodged its interest in Ralcorp in May when it made a $4.9bn takeover bid, which was promptly turned down. Since then, Ralcorp has announced plans to spin off its branded cereal business Post Foods from its private-label operations.
In rejecting ConAgra’s latest offer, Ralcorp insisted its separation plan would unlock “additional significant value for our shareholders”.
In a letter to ConAgra CEO Gary Rodkin, Ralcorp chairman of the board William Stiritz said: “Ralcorp has a very strong track record of creating superior long term shareholder value. After careful review, our board of directors has determined that the separation of Post Foods from Ralcorp will better allow each company to focus on strategies specific to their particular businesses, thereby unlocking additional significant value for our shareholders.”
Stiritz added that the company is “firmly committed” to the plan and therefore said it has “nothing further to discuss”.
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