Food Fight: How Much Higher Will ConAgra Bid?

For the second time in a week, one food giant has publicly spurned a deal from another.

On Wednesday, the board of Ralcorp again rejected ConAgra’s unsolicited offer, this time for $86/ share. (The previous offer was for $82.)

In addition, Ralcorp also adopted a shareholder rights plan to prevent outside investors from gaining control of the company without paying a premium price.

That suggests ConAgra would have to bump their offer even higher to get a deal done.

UBS analyst David Palmer tells Fast Money the resolve at ConAgra to get the deal done seems high - so it's possible another bid is coming.

It appears the Street is expecting a higher offer too. On Wednesday, shares of Ralcorp closed at 87 and change – above ConAgra’s second bid.

Palmer tells Fast Money he’s crunched the numbers and thinks the offer could be bumped a little but only into the low 90’s. "For now it looks like that would be the barrier," he says.

Get all the details. Watch the video now!

* You can find our conversation with David Palmer about 16 minutes into this video clip.

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