ConAgra Green Signals Another Deal
The Ralcorp’s take over by packaged food giant ConAgra Food definitely pissed of its share holders back 2013. The management is still going ahead with Smorgasbord. Jana Partners, an activist investor is going create storm in the board due to this. The company has total market value of $17 billion now. Hedge fund tycoon Barry Rosenstein went public with 7.2 percent stake in the company.
He also informed press about an introduction of three new directors on board. The share market has given positive signal on these developments. Ralcorp deal cost wonders to the ConAgra but company has still not disclosed the benefits of the deal. Investor Jana believes that it accounts to several losses to the corporation but didn’t tell the solution to fix that.
The Ralcorp manufactures white-label products. The private-label business valued around $1.3 billion in the month of March, according to the ConAgra officials. The ConAgra is now in the full control of that division. Gary M. Rodkin, Chief Executive Officer, ConAgra resigned in the April, one month ahead of the schedule.
Since that new CEO Sean M. Connolly has failed to inform about the new plans. Looks like the CEO favor mergers and acquisition games. Jimmy Dean Sausages and Ball Park frankfurters were bought by the firm and the resold for $7.7 billion to the Tyson Foods. The former Hillshire Brands employee managed to get enough press attention for the same.
The ConAgra’s shares have jumped since the decision. Frozen food, Commercial French Fries division and private-label good’s share can be as high as $43 a piece.