Standard&Poor's expects ConAgra Foods' operating margins to improve following the divestitures of its lower margin commodity beef, pork, and lamb businesses. These divestitures will allow management to focus on its higher margin packaged-foods segment. ConAgra has agreed to transfer a 56% interest in its fresh beef and pork processing business to a new venture led by Hicks, Muse, Tate&Furst for cash proceeds of about $800 million and an equity interest of $150 million. The joint venture will also owe ConAgra $150 million of subordinated debt, $30 million of secured debt, and about $250 million of credit lines assumed by the venture. The total value of the transaction is about $1.4 billion. ConAgra's cash proceeds will likely
