(Reuters) - Long-time suitor ConAgra Foods Inc
Ralcorp shareholders will receive $90 per share in cash, representing a premium of 28.2 percent to the stock's Monday close, ConAgra said.
Ralcorp shares were trading at $88.50 before the bell. They closed at $70.23 on the New York Stock Exchange on Monday.
The deal is valued at $6.8 billion including debt, ConAgra said in a statement on Tuesday.
Ralcorp last year rejected several ConAgra offers, including a $94 per share bid that valued the company at $5.2 billion, and chose instead to spin off its Post cereal business.
With Tuesday's deal, the combined market value of Ralcorp and Post Holdings Inc
Activist investor Corvex Management, Ralcorp's largest shareholder, in August demanded that the food manufacturer either sell itself, buy another company or change its strategy after a series of earnings disappointments.
ConAgra said the deal, which was approved by the boards of both companies, will add to earnings in the first year.
ConAgra's shares closed at $28.29 on the New York Stock Exchange on Monday.
(Reporting by Siddharth Cavale in Bangalore; Editing by Sriraj Kalluvila)
(This story was refiled to correct the month to August from October in the seventh paragraph)
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