American Italian Pasta Co. has declined to comment on investigations

American Italian Pasta Co. has declined to comment on investigations

American Italian Pasta Co. (AIPC) has declined to comment on the investigations by a number of law firms over its planned sale to US food group Ralcorp Holdings.

Ralcorp announced yesterday (21 June) that it was to buy pasta supplier American Italian Pasta Co. in a deal worth US$1.2bn.

However, six law firms have since started investigations over concerns as to whether the board of directors of AIPC undertook a fair process to obtain fair consideration for all of the company's shareholders.

Lawyers at one firm, Robbins Umeda, said: “Specifically, our investigation concerns whether the company's board of directors breached their fiduciary duties to AIPC shareholders by failing to adequately shop the company before entering into the transaction with Ralcorp. Notably, at least one analyst has set a price target of $60.00 per share, $7 above the amount offered by Ralcorp and accepted by AIPC's board of directors.”

However, a spokesperson for AIPC said it would not comment on the investigations.