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

High Time For A Cannabis Hedge Fund?

Sep 30 2014 | 7:07am ET

Launching a hedge fund is always a gamble, but Leslie Bocskor's decision to launch...

Lifestyle

Griffin Donates $1M To Rauner's Illinois Gov. Campaign

Sep 22 2014 | 9:29am ET

Hedge fund billionaire Kenneth Griffin definitely has a dog in this fight. The Citadel...

Guest Contributor

Appraisal Ratio Key To Evaluating Hedge Funds And Other New Investments

Sep 29 2014 | 3:07pm ET

As a former finance professor Peter Hecht experiences heartburn every time he hears...

 

Videos

Editor's Note

    Must Attend Hedge Fund Charity Events For October

    Sep 30 2014 | 9:29am ET

    The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…

 

Futures Magazine

September 2014 Cover

High frequency market making

High frequency trading is not evil, it is not a conspiracy and it really is not new; it is the natural evolution of the professional trading community making markets, providing liquidity and hopefully...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.