retail news in context, analysis with attitude

Bloomberg reports that “Ralcorp Holdings Inc. investor Jack Murphy says he expects the biggest U.S. maker of store-brand foods to consent to a takeover if spurned suitor ConAgra Foods Inc. boosts its bid at least 7 percent.”

It was reported yesterday that ConAgra upped its unsolicited bid to acquire Ralcorp Holdings to $4.9 billion, a two-dollar-per-share increase from the previous proposal that was rejected by Ralcorp - and was rebuffed again by Ralcorp, which maintains that an acquisition would not be in the best interests of its shareholders.

“Ralcorp will listen at a higher price, and we think ConAgra is willing to bid higher,” Murphy, senior portfolio manager at Levin Capital Strategies, told Bloomberg yesterday. “Our gut says $92 to $100” per share, up from the $86 per share that is the most recent offer.
KC's View: