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Strategies & Market Trends : Speculating in Takeover Targets -- Ignore unavailable to you. Want to Upgrade?

To: richardred who wrote (2799)	8/13/2011 1:01:35 PM
From: richardred	Read Replies (1) \| Respond to of 7254

CAG must want Ralcorp bad. Someone who goes after a company three times and gets rejected three times . Exact opposite to someone who's not offering a bear hug reception. Ralcorp is selling off a major division and spending 500 million plus on a new division. IMO if CAG is serious this time. It's likely to take the offer to Ralcorp shareholders. I'm staying away. ConAgra's latest bid for Ralcorp rejectedConAgra makes third bid for Ralcorp at $5.1B that is rejected Related Quotes SymbolPriceChange CAG23.19+0.18 RAH79.02+0.84 Follow these stocks Sarah Skidmore, AP Food Industry Writer, On Friday August 12, 2011, 7:43 pm EDT PORTLAND, Ore. (AP) -- ConAgra Foods Inc. made yet another try for Ralcorp Holdings Inc. with a $5.17 billion bid that was rejected on Friday. Ralcorp said that it received the $94 dollar per-share offer from ConAgra on Thursday and decided that it is not in the best interest for the food company or its shareholders. ConAgra offered $86 per share for Ralcorp in May and $82 per share in March, both of which were quickly refused. Ralcorp, based in St. Louis, is in the process of spinning off its Post cereal business to focus on its core private-label foods and says this move will provide better value for its shareholders. ConAgra, based in Omaha, Neb., was not available to comment. The latest offer, which was disclosed after the market closed Friday, is a nearly 19 percent premium over Ralcorp's most recent closing price. Analysts have suggested that ConAgra's prior offers were well below the company's value, with some analysts suggesting the company would need to go as high as $98 per share for a serious offer. Ralcorp Chairman William Stiritz said in a letter to ConAgra executives that the company has a very strong track record of creating superior long-term shareholder value and it stands by its plans to spin off Post, which makes cereals such as Honey Bunches of Oats and Grape Nuts. "We are firmly committed to this plan and therefore, we have unanimously determined that we have nothing further to discuss," Stiritz wrote. ConAgra's brands include Chef Boyardee and Slim Jim. Closing a deal with Ralcorp would make the company the third-largest packaged food maker in the U.S. Shares of Ralcorp rose $6.98, or nearly 9 percent, to $86 in after-hours trading on the news. Shares of ConAgra were unchanged after closing down 18 cents at $23.19 Friday. finance.yahoo.com