Thursday, 23 October 2014
Last updated 28 min ago
Aug 24 2012 | 12:48pm ET
Carl Icahn's former right-hand man is continuing in his mentor's footsteps.
Corver Management, the hedge fund helmed by former Icahn lieutenant Keith Meister, is rattling its sword in the direction of Ralcorp Holdings. Corvex said yesterday that it owns more than 5% of the private-label food company and demanded that Ralcorp do something, up to and including putting itself up for sale.
"The 'status quo' is unacceptable," Corvex wrote in a regulatory filing.
The hedge fund, founded two years ago by Meister, said Ralcorp could assuage it by other measures, including adding investors to its board of directors, improving its operating performance, reallocating its capital or seeking acquisitions. Or, it could merge with another company—an option Ralcorp rejected last year when it was approached by ConAgra Foods. But Corvex demanded that it do something "immediately."
Corvex said Ralcorp has "had several serious execution issues" since it spun-off its Post Cereals division in the wake of the ConAgra approach, "including disappointing earnings, inability to file quarterly financials on a timely basis and poor communication with investors and analysts."
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
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