Reports: Cereal giant Post poised to buy Minn.-based Michael Foods
Shares of Post Holdings, the maker of Post cereals, rose almost 6 percent Wednesday as news reports indicated the company is poised to buy Minnetonka-based Michael Foods.
Michael Foods' private-equity owners have been looking to sell the maker of egg, potato and other grocery products. The company reports annual sales of about $1.5 billion.
Citing unidentified sources, the Wall Street Journal reports Post would pay as much as $2.5 billion for Michael Foods. Bloomberg News reports the Minnetonka-based company also drew a bid from Tyson Foods.
Post is known for selling breakfast cereals but has been diversifying its product portfolio to include a broader array of foods.
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