Icahn Vet Takes Bite Of, At Ralcorp

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."

In Depth

Financial Industry Blockchain Consortium R3 To Open-Source Platform Code

Oct 20 2016 | 9:03pm ET

Bitcoin's blockchain technology has spawned a flurry of activity among fintech startups...


U.S. Trust's Beard: The Rapid Growth of the Art Lending Industry

Oct 7 2016 | 10:55pm ET

Alternative investment managers have emerged as some of the most significant art...

Guest Contributor

Hedge Fund Marketing – Tips for Your Initial Sales Meeting

Sep 29 2016 | 5:46pm ET

There are two main goals a hedge fund should have for an initial in-person sales...