S&P 500
7,507.80
-0.22%
Dow Jones
51,595.40
-0.32%
Nasdaq 100
30,411.80
-0.23%
Russell 2000
2,975.48
-0.09%
FTSE 100
10,384.80
-0.34%
Nikkei 225
71,987.20
+0.02%

Investing

Ralcorp to Spin-off Post Cereals on January 30th (RAH, GIS, K, CAG, KFT)

Photo of Paul Ausick
By Paul Ausick Published
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

Ralcorp Holdings Inc. (NYSE: RAH) will distribute about 80% of the stock in its spin-off of Post Holdings Inc. to Ralcorp shareholders. Each shareholder will get one share of Post stock for every two shares of Ralcorp. The new company will trade on the NYSE under the symbol ‘POST’.

Post will now compete more directly with other cereal makers like General Mills Inc. (NYSE: GIS) and Kellogg Co. (NYSE: K). Last summer Ralcorp beat back a hostile takeover bid by ag giant ConAgra Corp. (NYSE: CAG). Ralcorp bought the cereal business from Kraft Foods Inc. (NYSE: KFT) in 2008.

Ralcorp will retain the private-label food business, while Post will get the branded products like Grape Nuts and Honey Bunches of Oats. Ralcorp expects to realize about $900 million in the spin-off and will retain 20% ownership of Post.

DISCLOSURE:
INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUE Brokerage and Active investing products offered through SoFi Securities LLC, member FINRA(www.finra.org)/SIPC(www.sipc.org). Advisory services are offered by SoFi Wealth LLC, an SEC-registered investment adviser. Information about SoFi Wealth’s advisory operations, services, and fees is set forth in SoFi Wealth’s current Form ADV Part 2 (Brochure), a copy of which is available upon request and at www.adviserinfo.sec.gov. Probability of Member receiving $1,000 is a probability of 0.026%; If you don’t make a selection in 30 days, you’ll no longer qualify for the promo. Customer must fund their account with a minimum of $50.00 to qualify. Other fees, such as exchange fees, may apply. Please view our fee disclosure to view a full listing of fees. Investing in alternative investments and/or strategies may not be suitable for all investors and involves unique risks, including the risk of loss. An investor should consider their individual circumstances and any investment information, such as a prospectus, prior to investing. Interval Funds are illiquid instruments, the ability to trade on your timeline may be restricted. Brokerage and Active investing products offered through SoFi Securities LLC, Member FINRA(www.finra.org) /SIPC(www.sipc.org). There are limitations with fractional shares to consider before investing. During market hours fractional share orders are transmitted immediately in the order received. There may be system delays from receipt of your order until execution and market conditions may adversely impact execution prices. Outside of market hours orders are received on a not held basis and will be aggregated for each security then executed in the morning trade window of the next business day at market open. Share will be delivered at an average price received for executing the securities through a single batched order. Fractional shares may not be transferred to another firm. Fractional shares will be sold when a transfer or closure request is initiated. Please consider that selling securities is a taxable event. Options involve risks, including substantial risk of loss and the possibility an investor may lose the entire investment Before trading options please review the Characteristics and Risks of Standardized Options  Investing in an Initial Public Offering (IPO) involves substantial risk, including the risk of loss. Further, there are a variety of risk factors to consider when investing in an IPO, including but not limited to, unproven management, significant debt, and lack of operating history. For a comprehensive discussion of these risks please refer to SoFi Securities’ IPO Risk Disclosure Statement This should not be considered a recommendation to participate in IPOs and investors should carefully read the offering prospectus to determine whether an offering is consistent with their investment objectives, risk tolerance, and financial situation. New offerings generally have high demand and there are a limited number of shares available for distribution to participants. Many customers may not be allocated shares and share allocations may be significantly smaller than the shares requested in the customer’s initial offer (Indication of Interest). For more information on the allocation process please visit IPO Allocation.
Follow 24/7 Wall St. on Google
Photo of Paul Ausick
About the Author Paul Ausick →

Paul Ausick has been writing for 247Wallst.com for more than a decade. He has written extensively on investing in the energy, defense, and technology sectors. In a previous life, he wrote technical documentation and managed a marketing communications group in Silicon Valley.

He has a bachelor's degree in English from the University of Chicago and now lives in Montana, where he fishes for trout in the summer and stays inside during the winter.

Featured Reads

Our top personal finance-related articles today. Your wallet will thank you later.

Laurel Road Review: Is It the Right Fit for You?
Austin Smith |

Laurel Road Review: Is It the Right Fit for You?
Bask Bank Review: Is It the Right Savings Account for You?
Austin Smith |

Bask Bank Review: Is It the Right Savings Account for You?

Continue Reading

Jon C. Ogg |

ConAgra Misses on EPS, Ralcorp Acquisition (CAG, RAH, KFT, GIS, HNZ, SLE)

Food processing giant ConAgra Foods, Inc. (NYSE: CAG) reported first quarter 2012 earnings before the markets opened this morning. Even…

David J. Phillips |

Poor Judgment by Ralcorp’s Board

Ralcorp’s (NYSE:RAH) board of directors unanimously rejected the latest merger proposal from ConAgra Foods (NYSE: CAG), saying the $5.18 billion…

Paul Ausick |

ConAgra Finally Acquires Ralcorp

courtesy ConAgra Foods Inc.In September of 2011, ConAgra Foods Inc. (NYSE: CAG) withdrew its $5.2 billion bid to acquire packaged…

Jon C. Ogg |

Special Situation: Post Now Entirely Free From Ralcorp (RAH, POST)

Ralcorp Holdings, Inc. (NYSE: RAH) may still appear as though the stock was down significantly today on some quote systems.  The…

Jon C. Ogg |

Kraft Split: Changing A DJIA Component; Warren Buffett Analysis (KFT, BRK-A, BRK-B, PEP, COP, RAH, COP, MRO, MPC, AIG)

When Kraft Foods Inc. (NYSE: KFT) announced its deal to acquire Britain’s Cadbury in May 2010, investor Warren Buffett proclaimed…

Douglas A. McIntyre |

Breakfast Cereals Americans No Longer Love

The average American spends about 13 minutes a day preparing and eating breakfast, the meal nutritionists consider to be the…

Douglas A. McIntyre |

Kraft (KFT) Buckles To Peltz Pressure

Kraft (KFT) is in the late stages of a deal to sell its Post cereal division to private label cereal…

Jon C. Ogg |

Top Debt & Credit Rating Agency Actions (BAC, WFC, C, CNH, RAH, SWC, FIATY)

Our daily look at credit and debt ratings actions has to lead off with the news that Moody’s has lowered…

Douglas A. McIntyre |

Kraft (KFT) To Merge Post Cereals Into Ralcorp (RAH)

Kraft (KFT) will merger its Post cereals division into Ralcorp (RAH). The transaction is tax-efficient and worth approximately $2.6 billion…

Top Gaining Stocks

CarMax
KMX • Vol: 7,330,419
Corning
GLW • Vol: 22,800,969
Intel
INTC • Vol: 233,719,006
Super Micro Computer
SMCI • Vol: 68,465,534
Enphase Energy
ENPH • Vol: 13,978,376

Top Losing Stocks

Accenture
ACN • Vol: 41,744,333
EPAM Systems
EPAM • Vol: 5,636,587
Cognizant
CTSH • Vol: 61,311,400
Coterra Energy
CTRA • Vol: 73,319,495
Kroger
KR • Vol: 26,704,230