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Report: ConAgra Foods 'Ripe' For Split Up

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ConAgra Foods Inc (NYSE: CAG) "appears ripe" for a split-up, according to a speculative report on TheDeal.com Wednesday.

ConAgra shares are off more than 5 percent since December and changed hands recently at $34.65, down $0.31.

The report didn't suggest a deal with ConAgra is underway, but noted that the company is faced with declining sales for its consumer foods unit and losses at its private label business.

ConAgra's newly appointed Chief Executive Sean Connolly most recently headed meat processor Hillshire Brands, when it got acquired last year for nearly $8.6 billion by Tyson Foods Inc. (NYSE: TSN), the report noted.

Connolly's appointment at ConAgra is effective April 6.

Deal.com said ConAgra might split its branded food and private label units into two separately traded companies. Alternately, it might seek a buyer.

"Brazilian investment firm 3G Capital, for example, is on the hunt for food industry acquisitions," according to the report, which cited "industry observers."

 

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