Packaged foods giant ConAgra Foods, Inc. ( CAG ) on Sunday said it would reevaluate its options after fellow food maker Ralcorp ( RAH ) rejected its new $5.2 billion takeover offer.
ConAgra had boosted its bid for RAH to $94 per share from a prior $86 offer, which was up from its initial $82 bid. Ralcorp has rejected all of CAG's offers as undervaluing its business.
ConAgra CEO Gary Rodkin commented, "We are extremely disappointed by Ralcorp's summary rejection of our strong proposal and its repeated refusals to explore this opportunity for its shareholders." CAG also noted that RAH took less than a day to reject its latest offer.
ConAgra shares were mostly flat in premarket trading Monday.
The Bottom Line
Shares of ConAgra Foods ( CAG ) have a 3.97% dividend yield, based on Friday's closing stock price of $23.19. The stock has technical support in the $21-$23 price area. If the shares can firm up, we see overhead resistance around the $25-$26 price levels.
ConAgra Foods, Inc. ( CAG ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
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