WSJ : Post Holdings Held Talks To Merger With ConAgra's Lamb Weston

(RTTNews) - Cereal maker Post Holdings Inc. (POST) recently held talks to combine with ConAgra Foods Inc.'s frozen-potato business, the Wall Street Journal reported citing people familiar with the matter.

The talks stalled but could come back to life, the journal said, adding that ConAgra is currently focused on a previously announced plan to spin off the potato business, which is known as Lamb Weston, this year

The deal would value Lamb Weston at around $6 billion, the report said. It was to be structured as a so-called Reverse Morris Trust, a tax-efficient transaction in which a company—like ConAgra in this case—breaks off a piece and merges it with a similarly sized rival.

Lamb Weston makes frozen french fries, mashed potatoes and tater tots, among other products.