As Kraft Foods Inc. continues to adjust its portfolio of businesses, shareholders will have the option to retain holdings in the Post cereals business, which is being sold to Ralcorp Mailman LLC for $2.6 billion. Kraft will
split off all of the outstanding shares of subsidiary Cable Holdco Inc., which will own certain assets and liabilities of the Post cereals business. Kraft shareholders will have the option to exchange some or all of their shares of Kraft common stock and receive shares of Cable Holdco common stock. Cable Holdco will merge into Ralcorp as part of the bigger Post divestiture.
Kraft is also bulking up its core business to
compete with a soon-to-be-merged Mars Inc. and Wm. Wrigley Jr. Co. The move is part of its three-year
restructuring plan after it spun off from Altria Corp. Kraft acquired Groupe Danone SA's biscuit business in July for $7.2 billion. The deal gave Kraft control of Danone's three main cookie brands, LU, Tuc and Prince, and operations in 20 countries, including 36 factories.
Approximately 30.4 million shares of Cable Holdco will be offered in exchange for Kraft common stock.
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