ConAgra Foods Inc raised its bid for Ralcorp Holdings Inc to around $4.9 billion in cash as it looks to attract price-conscious shoppers with lower-priced foods -- but may have to dig even deeper to close a deal. Shares of Ralcorp -- which owns the Post cereal brand but mainly makes foods which stores brand as their own -- rose to $90, above the sweetened offer price, indicating investors may expect a higher bid. "ConAgra was very wise to recognize the significant value in Ralcorp and there would be plenty left on the table at $100 (per Ralcorp share)," said Janney Capital Markets analyst Jonathan Feeney. "There's big volume and (the stock is) trading 4 percent above the cash price ... that's conviction!," noted Tim Ghriskey, chief investment officer at Solaris Asset Management, who previously owned both stocks, but no longer does.
Source
