Cereal maker Post Holdings Inc is close to a deal to acquire eggs and dairy producer Michael Foods Group Inc for $2.5 billion, prevailing over a rival bid from Tyson Foods Inc, according to a person familiar with the matter.The news, which was first reported by the Wall Street Journal, drove Post Holdings shares up 6 percent on Wednesday afternoon, giving it a market value of around $2.1 billion.Goldman Sachs Group Inc's private equity arm bought Michael Foods from takeover firm Thomas H. Lee Partners LP in 2010 for around $1.7 billion. Thomas H. Lee retained an ownership stake of about 20 percent as part of that transaction.The source asked not to be identified because the deal has not yet been officially announced. Representatives for Goldman Sachs, Post, Michael Foods and Tyson Foods did not respond to requests for comment.
Post Holdings, Inc. is a consumer goods company operating in the center-of-the-store, active nutrition and private label food categories. Shares of POST traded higher by 5.77% or $2.99/share to $54.79. In the past year, the shares have traded as low as $38.31 and as high as $60.63. On average, 576016 shares of POST exchange hands on a given day and today's volume is recorded at 1524171.
Tyson Foods, Inc. is a food production company. The Company produces, distributes and markets chicken, beef, pork, prepared foods and related allied products. Shares of TSN traded higher by 0.57% or $0.24/share to $42.68. In the past year, the shares have traded as low as $23.24 and as high as $44.24. On average, 3743160 shares of TSN exchange hands on a given day and today's volume is recorded at 3655895.
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