buy another brand name that no ones buying. Haven't you heard store brands the only thing selling during this depression. Also nobody going to be taking food stamps they are backed by hot air coming out of Washington. With out food stamps the corporate food chain collapses.
Looks like RAH shopped it around the block and they couldn't get anyone to pay what they think it is worth, but at the same time recognize that they are slowly killing the Post brand. As such, they've decided to do the only thing left... they are going to spin it off to their shareholders as a separate entity.
Rather weird that Ralston would be selling off Post so soon after jumping for joy when they bought it from Kraft in 2008. I not buying all of the bit Ralston wants cash to starve off a buyout. Maybe it was too much for management to handle or wasn't bringing home the bacon they thought it would. Adding Post to Kelloggs or General Mill, even Quaker Oats (Pepsico) would likely run afoul of anti-trust. Fair disclosure, I own Kraft, General Mills, Kelloggs and Pepisco shares for life.
I agree about the antitrust problems. I just don't see how they could sell it to K or GIS. They probably could get away with selling out to PEP since their share of the cold cereal biz is much smaller.
As far at RAH, they have been very profitable with the POST assets, but have done a terrible job of managing it. When the Kraft marketing contract ran out (and they where supposed to be able to run it on their own) the sales trends really fell off a cliff and they lost market share to GIS and K.