Sept 27 Ralcorp Holdings Inc is
exploring the sale of its remaining 20 percent stake in Post
Holdings Inc, the cereal maker it spun off earlier this
The proposed sale of the stake, announced on Thursday, would
be worth about $200 million at Post's closing share price on
Ralcorp has embarked on a restructuring program that will
consolidate its various businesses with the aim of saving $26
million to $31 million in the year ending September 2013.
Ralcorp spun off its cereal business into Post Holdings
after repeatedly spurning takeover offers from ConAgra Inc
Activist investor Corvex Management, which has been pushing
Ralcorp to either sell itself, buy another company or change its
strategy, had expressed concern that the company has had
execution issues since the Post separation.
Ralcorp had to restate its financial reports for fiscal 2011
and the first quarter of fiscal 2012 to account for an
additional impairment charge associated with the spin-off of
Shares of Post Holdings closed at $29.49 on Wednesday on the
New York Stock Exchange.