Pinnacle Foods (PF) Gains After Being Highlighted as a Possible Takeout Target for ConAgra (CAG)
- Record-setting rally pushes on as S&P ends week up 3 percent
- Trump's Cohn Pick Most Bullish Sign Yet for Banks - Cowen
- Unusual 11 Mid-Day Movers: (IDXG) (INVN) (EBS) Higher; (SCON) (DTEA) (DLTH) Lower (more...)
- 21st Century Fox (FOXA) offers to acquire Sky for GBP10.75/share
- Coca Cola (KO) Announces James Quincey to Succeed Muhtar Kent as CEO; Kent to Continue as Chairman
Get inside Wall Street with StreetInsider Premium. Claim your 2-week free trial here.
In his upgrade of ConAgra today, Palmer said Conagra's lack of shareholder protection, pure-play aspirations, and a projected low level of leverage post-spin all point to a major acquisition near term. He sees Pinnacle as the most likely target, citing three reasons:
1) its board has demonstrated a willingness to sell,
2) ConAgra has an intimate knowledge of its business given past history between management, and
3) they believe Conagra and Pinnacle synergies would be among the highest in US Food.
The analyst uses a $62 takeout price for Pinnacle, which he said would offer 16% EPS accretion assuming a 50/50 stock/cash deal.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- UPDATE: Japan's TDK in Talks to Buy InvenSense (INVN) - Reuters
- Walgreens (WBA) Said Close to Finalizing Rite Aid (RAD) Deal with FTC - CTFN News
- Transocean (RIG) Closes Acquisition of Transocean Partners
Create E-mail Alert Related CategoriesAnalyst Comments, Mergers and Acquisitions, Rumors, Trader Talk
Related EntitiesRBC Capital, Definitive Agreement
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!