ConAgra Expressed Disappointment Over Ralcorps Rejection Of Revised Proposal

ConAgra Expressed Disappointment Over Ralcorps Rejection Of Revised Proposal


ConAgra Foods (NYSE:CAG) confirmed that on August 11 it send a revised proposal to Ralcorp Holdings' board of directors to acquire the company for $94 per share in cash and said that it looked forward to private and constructive discussions. The company emphasized the strong value of the all-cash proposal. The proposal represents a nearly 10% increase from the all-cash $86 per share proposal that the company presented to Ralcorp in May. Ralcorp rejected the revised proposal within 24 hours. Gary Rodkin, chief executive officer of ConAgra Foods said, "We are extremely disappointed by Ralcorp's summary rejection of our strong proposal and its repeated refusals to explore this opportunity for its shareholders." ConAgra Foods has a potential upside of 25.9% based on a current price of $23.19 and an average consensus analyst price target of $29.20.