Summary Box: Ralcorp buys American Italian Pasta Co; gives weak guidance, shares fall
By APMonday, June 21, 2010
Summary Box: Ralcorp pays $1.2B for pasta company
MAKING DEALS: Food maker Ralcorp Holdings Inc. agreed to buy American Italian Pasta Co. for about $1.2 billion, or $53 per share, and has acquired two cracker makers, as it expands its private-label pasta business.
LOWERED OUTLOOK: The company forecast a drop in its fiscal third-quarter net income to $1 a share, down from $1.31 per share in the prior year. Analysts expect earnings of $1.29 per share, according to a survey by Thomson Reuters.
STOCK DROP: Shares fell $4.42, or 7 percent, to $57.80 during midday trading. The stock has traded between $52.66 and $69.86 over the past year.
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