Kraft Quits the Breakfast Club |
| BusinessWeek - Nov 16, 2007 |
Kraft (KFT) is shedding big brand names like Post cereal in an effort to focus the big food company on other promising, growing brands.
In a complex deal announced Nov. 15, the Post business will be spun off and then merged with Ralcorp (RAH), primarily a maker of store-brand cereal and other food products. The new Ralcorp will sell Post's well-known brand names like Honey Bunches of Oats, Shredded Wheat, Grape Nuts and Pebbles cereals.
Though the deal values Post at about $2.9 billion, it's structured in a way that minimizes taxes, making it the equivalent of a $4 billion cash deal. Plus, in the all-stock deal, Kraft shareholders will get Ralcorp shares and end up owning 54% of the new company.
Read Full Article from BusinessWeek
- Posted: 2007-11-16 10:21:21
| More Stock Investor Place Financial News |
 |
|
|
|
| Stock Investor Place Financial News Archive |
|
|
|
