ConAgra Foods Inc. (CAG) said its board has approved the
repurchase of an additional $750 million shares, as the food
company looks to increase value to shareholders.
The company said the repurchases are expected to be funded by
cash generated from operations and are part of broader capital
allocation priorities. ConAgra increased its dividend by 4.3% in
September. Its market value is $10.5 billion.
ConAgra has been on the hunt for strategic deals as it tries to
stoke some growth in the slow-growing packaged food industry and
bolster its position in international markets. The company earlier
this year lost out on its pursuit of Ralcorp Holdings Inc. (RAH),
one of the most prominent private-label food companies in the
U.S.
In September, ConAgra reported its fiscal first-quarter earnings
fell 42% as higher sales couldn't fully offset a 15% jump in the
cost of goods.
Shares were flat, at $25.37 in recent trading. The stock is up
12% year-to-date.
-By Nathalie Tadena, Dow Jones Newswires; 212-416-3287; nathalie.tadena@dowjones.com;