UBS on Food Products: Time to Negotiate? ConAgra (CAH) Issues Ultimatum
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Price: $16.43 +0.98%
Rating Summary:
3 Buy, 17 Hold, 5 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
3 Buy, 17 Hold, 5 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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UBS on Food Products: Time to Negotiate? ConAgra Issues Ultimatum
UBS analyst, David Palmer, said, "ConAgra (NYSE: CAG) reiterated its $94 bid, and added that it would withdraw its proposal if the companies have not engaged in a constructive dialogue by the end of Sep. 19. We note that this is one day before ConAgra's F1Q12 earnings release. ConAgra added that it would "pursue other opportunities" should Ralcorp refuse to negotiate."
"We continue to believe that an acquisition of the entirety of Ralcorp for cash would be the best outcome for shareholders, and that negotiations with ConAgra could lead to upside to the $94 bid. We are lowering our Ralcorp (NYSE: RAH) price target (PT) to $87 from $91 and our CAG PT to $29 from $30 to reflect lower odds of a near-term deal. For ConAgra, aggressive share repurchase could be used to support the stock should a deal not occur."
UBS analyst, David Palmer, said, "ConAgra (NYSE: CAG) reiterated its $94 bid, and added that it would withdraw its proposal if the companies have not engaged in a constructive dialogue by the end of Sep. 19. We note that this is one day before ConAgra's F1Q12 earnings release. ConAgra added that it would "pursue other opportunities" should Ralcorp refuse to negotiate."
"We continue to believe that an acquisition of the entirety of Ralcorp for cash would be the best outcome for shareholders, and that negotiations with ConAgra could lead to upside to the $94 bid. We are lowering our Ralcorp (NYSE: RAH) price target (PT) to $87 from $91 and our CAG PT to $29 from $30 to reflect lower odds of a near-term deal. For ConAgra, aggressive share repurchase could be used to support the stock should a deal not occur."
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