Acquisition of Ralcorp Holdings, Inc. by ConAgra Foods, Inc. May Not Be in Ralcorp’s Shareholders’ Best Interests
Robbins Umeda LLP is investigating possible breaches of fiduciary duty and other violations of the law by members of the board of directors of Ralcorp Holdings, Inc. (NYSE: RAH) in connection with their efforts to sell the company to ConAgra Foods, Inc. (NYSE: CAG).
On November 27, 2012, Ralcorp and ConAgra announced they had entered into a definitive merger agreement under which ConAgra will acquire Ralcorp through an all cash tender offer with a total value of $6.8 billion, including the assumption of debt. Ralcorp shareholders will receive $90.00 per share. The transaction is expected to close by March 31, 2013.
The Board of Directors’ Actions May Prevent Ralcorp Shareholders from Receiving the Maximum Value for Their Stock
Robbins Umeda LLP’s investigation focuses on whether the board of directors at Ralcorp is undertaking a fair process to obtain maximum value and adequately compensate its shareholders. On November 27, 2012, Ralcorp reported its fourth quarter and fiscal 2012 financial results reflecting an 8% increase in net sales for the quarter and 14% for the year. Moreover, adjusted earnings per share for fiscal for the fourth quarter was $0.97 compared to analyst estimates of $0.87. Given these financials, the firm is examining the board of directors’ decision to sell Ralcorp now rather than allow shareholders to continue to participate in the company’s continued success and future growth prospects.
Ralcorp shareholders have the option to file a class action lawsuit against the company to secure the best possible price for shareholders and the disclosure of material information so shareholders can vote on the transaction in an informed manner.
Ralcorp shareholders who would like more information about their rights and potential remedies can complete the form below and we will contact you directly. You can also contact attorney Darnell R. Donahue at (800) 350-6003.