PHILADELPHIA, May 19 (Reuters) - Ralcorp Holdings Inc is trying to sell its Post cereals unit in a move to defend against an unwanted takeover bid from ConAgra Foods Inc, a source familiar with the situation said.
Ralcorp wants almost $2 billion for the unit, which it acquired from Kraft Foods Inc in 2008. Ralcorp has yet to find an interested suitor, said the source. The source declined to be named because the talks are private.
Selling the unit would give Ralcorp money to return cash to shareholders -- a move to keep investors from taking interest in the $4.9 billion takeover offer from ConAgra, the source said. Ralcorp has rejected ConAgra's approach twice.
Ralcorp has approached companies including General Mills and Kellogg Co, and private equity firms such as Blackstone Group and KKR about buying the unit, according to a report by Bloomberg.
Ralcorp declined to comment.
(Reporting by Jessica Hall, editing by Bernard Orr)
(For more M&A news and our DealZone blog, go to http://www.reuters.com/investing/news/mergers) Keywords: RALCORP/ (jessica.hall@thomsonreuters.com; 215-922-1086; Reuters Messaging: jessica.hall.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2011. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Ralcorp wants almost $2 billion for the unit, which it acquired from Kraft Foods Inc in 2008. Ralcorp has yet to find an interested suitor, said the source. The source declined to be named because the talks are private.
Selling the unit would give Ralcorp money to return cash to shareholders -- a move to keep investors from taking interest in the $4.9 billion takeover offer from ConAgra, the source said. Ralcorp has rejected ConAgra's approach twice.
Ralcorp has approached companies including General Mills and Kellogg Co, and private equity firms such as Blackstone Group and KKR about buying the unit, according to a report by Bloomberg.
Ralcorp declined to comment.
(Reporting by Jessica Hall, editing by Bernard Orr)
(For more M&A news and our DealZone blog, go to http://www.reuters.com/investing/news/mergers) Keywords: RALCORP/ (jessica.hall@thomsonreuters.com; 215-922-1086; Reuters Messaging: jessica.hall.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2011. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.