Ralcorp Spurns ConAgra’s $5.2 Billion Advance

Ralcorp Holdings (RAH), again, rejected a $5.2 billion merger bid by ConAgra after citing the multi-billion offer as insufficient, ensuring that the deal will expire without further negotiations beginning.

Ralcorp Holdings Inc (RAH)

In a statement, Ralcorp announced that its Board of Directors had met again to consider – and decline – ConAgra’s $94-a-share offer, which expires at 5 p.m. on Monday. Ralcorp’s 52-week high is only $90.51 per share.

According to Ralcorp’s directors, the bid would generate less value than the company’s current plan to spin off Post Foods, the maker of Cocoa Pebbles and Grape-Nuts cereals.

Ralcorp Holdings manufactures, distributes, and markets private-brand food products including Post brand cereal products and other regional and value-brand food products. Ralcorp is up nearly 17% year to date, while S&P 500 Index declined less than 5%. Paulson & Co (see John Paulson’s holdings here) increased their position in Ralcorp by 823% in the second quarter, bringing them to 3.7 million shares.

Here are the hedge funds with positions in Ralcorp in the second quarter.