Ralcorp to spin off its Post cereal division

Ralcorp to spin off its Post cereal divisionRalcorp Holdings Inc., the maker of Grape-Nuts and Honey Bunches of Oats cereal, plans to spin off Post Foods after failing to sell the unit to rival foodmakers. Co-Chief Executive Officer Kevin Hunt will be Ralcorp's CEO after the separation, which should be completed in about four to six months, St. Louis-based Ralcorp said. Ralcorp had explored selling Post to fend off a $4.9 billion bid from ConAgra Foods Inc., but Ralcorp received little interest in the division, which generated about one-fourth of its sales last year. Ralcorp had acquired Post from Kraft Foods Inc. in 2007.

Retail sales nearly flat in June, U.S. saysSales at U.S. retailers stagnated in June, highlighting weakness in consumer demand that accounts for 70 percent of the economy. Purchases rose 0.1 percent, the U.S. Commerce Department said. Sales excluding autos were little changed, the poorest performance since July 2010. Americans contending with declining home values and unemployment above 9 percent are holding back on spending, prompting retailers such as Target Corp. to sweeten discounts.

Energy pushes June wholesale prices downU.S. companies paid less for raw materials and factory goods in June. The producer price index, which measures price changes before they reach the consumer, declined 0.4 percent in June, driven by the steepest fall in energy prices in nearly two years. Gas prices dropped by the most since last May, the Labor Department said. Wholesale energy prices fell 2.8 percent. Food prices rose 0.6 percent in June, mostly because of higher fruit and melon costs.

Connecticut AG looking into GrouponGroupon Inc.'s practice of selling group-discount coupons with expiration dates is being reviewed by Connecticut Attorney General George Jepsen for possible state law violations. "It appears that what Groupon Inc. sells or offers may fall within the definition of a gift certificate under Connecticut law," Jepsen said in a prepared statement. "Connecticut law prohibits gift certificates from being sold or issued subject to an expiration date." Jepsen sent Groupon a letter Tuesday asking about its practices; Groupon has until Aug. 5 to reply.

ConocoPhillips to spin off refining businessConocoPhillips will conclude a three-year restructuring program by shedding its fuel-making business next year to refocus the company on more profitable oil and natural-gas production. The company will become two separate, publicly traded entities by the end of next June, Houston-based ConocoPhillips said. Chief Executive Officer Jim Mulva, who engineered the creation of ConocoPhillips through a $25 billion merger in 2002, will retire once the spinoff is finished.

Sony plans improved e-readers next monthSony Corp., Japan's largest exporter of consumer electronics, plans to introduce a line of upgraded digital book readers in the U.S. as early as next month to challenge Kindle maker Amazon.com Inc. The current Sony Reader, now priced from $180 to $300, will probably be offered with hardware and software improvements in August, said Phil Lubell, vice president of digital reading at Sony Electronics. The new products will be introduced to U.S. consumers before Sony's first tablet-computer models, which are scheduled to go on sale later this year.

FROM NEWS SERVICES