Investment bank Goldman Sachs has upgraded its rating on the US food groups Kraft.
Go deeper with GlobalData
The bank’s analysts have moved the rating from “sell” to “neutral”, citing speculation surrounding a restructuring.
In a note, the banker said: “This change comes despite our view that operational challenges remain, particularly relating to rising dairy near-term and continued weak market share data. That said the prospects of leverage, potential brand divestitures and an acceleration of overall restructuring will likely keep shares elevated.”
Nelson Peltz, the charismatic investor who became embroiled in a boardroom dispute with Heinz last year, has acquired a 3% stake in the US food producer Kraft Foods.
Furthermore, Peltz has already begun to make his presence felt, calling on the food group to sell its Post cereals and Maxwell House coffee subsidiaries, according to a source cited in media reports.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataHowever, reports suggest that at this stage Peltz has no plans to seek a place on the board. But the source indicated that Peltz would soon seek a meeting with Kraft CEO Irene Rosenfeld.
He believes that Kraft should focus on its grocery and frozen foods businesses and use the proceeds from the sale of Post cereals and Maxwell House to build its international business.
