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JMS Equity Research Downgrades American Italian Pasta Co (AIPC) to Neutral; Company To Be Acquired By Ralcorp (RAH)

June 21, 2010 5:11 PM EDT
AIPC Hot Sheet
Rating Summary:
    0 Buy, 0 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 16 | Down: 7 | New: 23
JMS Equity Research downgrades American Italian Pasta Company (Nasdaq: AIPC) from Buy to Neutral.

JMS analyst says, "It was announced today that Ralcorp Holdings, (NYSE: RAH) (BUY-rated) reached a definitive merger agreement with AIPC. Under the agreement, RAH will acquire all of AIPC's shares for $53/sh in cash, for a total purchase price of approximately $1.2 billion, net of cash acquired. RAH management noted that it expects to close during its fiscal fourth quarter (ending September 30, 2010)...Our take: We view RAH's bid as a fair valuation of AIPC's business...We do not believe there is a high likelihood of a competitive bid for AIPC."

To see all the upgrades/downgrades on shares of AIPC, visit our Analyst Ratings page.

American Italian Pasta Company engages in the production and marketing of dry pasta in North America.

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