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.
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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.
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