Shares of Private Brand cereal manufacturing giant Ralcorp jumped on Friday after CNBC said ConAgra national brand owner of such brands as Egg Beaters, Healthy Choice, Hunt’s, Orville Redenbacher’s, and PAM as well as numerous Private Brand products had made an unsolicited bid for the manufacturer and that talks were “no longer ongoing.”
ConAgra sent the letter to Ralcorp approximately two months ago, the cable television channel reported. ConAgra, has been struggling with increases in costs of commodities such as gas, dairy and wheat. Ralcorp — which sells a wide range of products such as pasta, cereals, corn snack products, syrups and salad dressings — has grown through acquisitions buying as many as 20 companies in the past 10 years including American Italian Pasta for $1.2 billion last year.
A merger this size could have a far reaching impact on both Private Brands and American consumers.