Post Recently Held Talks to Combine With ConAgra's Lamb Weston
June 21 2016 - 5:00PM
Dow Jones News
Cereal maker Post Holdings Inc. recently held talks to combine
with ConAgra Foods Inc.'s frozen-potato business, according to
people familiar with the matter, in what would be one of the
biggest recent consumer-industry mergers.
The talks stalled but could come back to life, the people said,
adding that ConAgra is currently focused on a previously announced
plan to spin off the potato business, which is known as Lamb
Weston, this year.
The deal would value Lamb Weston at around $6 billion, the
people said. It was to be structured as a so-called Reverse Morris
Trust, a tax-efficient transaction in which a company—like ConAgra
in this case—breaks off a piece and merges it with a similarly
sized rival.
Post, which makes Raisin Bran and Shredded Wheat cereals, had a
market value of about $4.9 billion Tuesday afternoon.
Write to Dana Mattioli at dana.mattioli@wsj.com and Dana
Cimilluca at dana.cimilluca@wsj.com
(END) Dow Jones Newswires
June 21, 2016 16:45 ET (20:45 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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