US: Ralcorp silent on Post sale rumours
By Katy Askew | 20 May 2011
Ralcorp Holdings has remained silent on reports that it is looking for a buyer for its Post Foods unit as part of attempts to fend off a US$4.9bn takeover approach from ConAgra Foods.
The company declined to comment on speculation that it hopes to raise around $2bn from the sale, cash that could then be returned to shareholders in order to block any hostile takeover approach from ConAgra.
Ralcorp, which makes cereals under the Post brand as well as private-label cereals and foods in a number of other categories, rejected ConAgra's $86-per share offer at the beginning of the month, insisting that it was "not in the best interests of shareholders".
According to a Reuters report, citing an unnamed source, Ralcorp has approached the likes of B&G Foods, Kellogg and General Mills - all of whom declined to comment on "market rumour and speculation".
As part of its defence strategy, Ralcorp has already adopted a "poison pill" shareholder rights plan that would flood the market with shares if ConAgra were to attempt to accumulate a stake of more than 10% by purchasing shares on-market.
Sectors: Canned food, Cereal, Condiments, dressings & sauces, Dried foods, Mergers & acquisitions, Private label
Companies: Ralcorp Holdings, ConAgra Foods, B&G Foods, Kellogg, General Mills
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