Private-label food maker Ralcorp Holdings Inc (RAH.N) said it would hive off its Post Foods cereals unit, after it twice rejected an unsolicited takeover bid by branded food giant ConAgra Foods Inc (CAG.N). The spin-off will create two pure-play companies, with Ralcorp focusing on the fast-growing market for cheaper non-branded foods and Post concentrating on branded cereals. Ralcorp had been examining a split-up before ConAgra approached, a source familiar with the matter told Reuters. The person, who was not authorized to speak to the media, declined to be named. The split-up is not in defense of the bid from ConAgra, the source said.
Ralcorp Holdings, Inc. (Ralcorp) is engaged in manufacturing, distributing and marketing private-brand food products, Post brand ready-to-eat cereal products and other regional and value-brand food products in the grocery, mass merchandise, drugstore and foodservice channels. Shares of RAH fell by 0.16% or $-0.14/share to $86.62. In the past year, the shares have traded as low as $53.90 and as high as $91.35. On average, 925284 shares of RAH exchange hands on a given day and today's volume is recorded at 1529232.
ConAgra Foods, Inc. (ConAgra Foods) is a food company. Shares of CAG fell by 0.04% or $-0.01/share to $26.26. In the past year, the shares have traded as low as $21.02 and as high as $25.82. On average, 4570350 shares of CAG exchange hands on a given day and today's volume is recorded at 10847609.
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