The US food group said its $5.18bn bid offered Ralcorp investors ‘greater certainty’ than the private-label firm’s plan to split in two.
Ralcorp rejected ConAgra’s $94-a-share offer on Friday, claiming that it was ‘not in the best interests of the company and its shareholders’.
ConAgra first lodged its interest in Ralcorp in May when it made a $4.9bn takeover bid, which was promptly turned down.
ConAgra CEO Gary Rodkin 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.”
He added that the share proposal represents a 44% premium to Ralcorp’s closing price on 21 March, the last business day prior to when ConAgra made its first formal approach.
“We believe this proposal is highly attractive to Ralcorp’s shareholders and represents superior value compared to any alternatives you could pursue, including your recently announced plan to split apart the company,” said Rodkin. “We strongly encourage you to consider this proposal as expeditiously as possible. In the interim, we look forward to our advisers speaking in the coming few days.”
Source: ConAgra
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