ConAgra Foods Makes $4.9 Billion Bid for Ralcorp
According to the Associated Press, ConAgra Foods Inc. made a $4.9 billion bid for cereal maker Ralcorp Holdings Inc., which would broaden its business making store-brand products and make it the third-largest packaged food company in the U.S. The $86-per-share bid is a 3.2 percent premium over Ralcorp''s Tuesday closing stock price of $83.33. ConAgra, whose brands include Chef Boyardee and Slim Jim, said it had initially made an $82 cash-and-stock offer. Ralcorp announced the day before that it had rejected an unsolicited takeover bid in March, saying it was not in shareholders'' best interest. Ralcorp, owner of the Post cereal brand, makes private-label and branded packaged foods. The bid ConAgra submitted also includes the assumption of $2.5 billion in debt.