Shareholders at Ralcorp have approved a mega-deal to combine Ralcorp with ConAgra Foods to create a one of the largest packaged foods companies in North America, with annual sales of $18bn.
Diversified private-brand specialist Ralcorp Holdings has announced it will consolidate its cereal, pasta, snacks and sauces businesses at a price of $17m-$22m in a bid to improve efficiency, slash costs and drive business forward.
Ralcorp has announced the acquisition of cookie maker Petri Baking Products shortly after It reported a sales boost in the second quarter (Q2) 2012 driven by frozen bakery products.
Ralcorp Holdings has completed the separation of its Post Holdings cereals business, through a tax-free spin-off to Ralcorp shareholders, the company has said.
The row over Ralcorp’s refusal to engage with suitor ConAgra has escalated following the filing of a class action lawsuit alleging Ralcorp’s directors breached their fiduciary duties to shareholders by rebuffing ConAgra’s advances.
A legal firm specializing in shareholder litigation has launched an investigation to determine whether Ralcorp has acted in its shareholders’ best interests by rejecting a recent $94 a share cash offer from ConAgra.
It may well be that Ralcorp was right to spurn ConAgra’s latest $94/share takeover offer. But its failure to explain why is troubling, according to corporate governance expert ISS Governance.
Ralcorp has rebuffed the advances of suitor ConAgra Foods for the third time and insisted that its plan to spin off its Post cereals business offers shareholders greater value.
Ralcorp’s board of directors has unanimously rejected ConAgra’s $4.9bn takeover bid, saying that it is not in shareholders’ best interests and that the board is committed to Ralcorp’s independence.
ConAgra has made a $4.9bn cash offer to acquire Ralcorp, in a bid that would expand its presence in the private label packaged foods sector, the company said on Wednesday.
