Kraft Foods has refused to be drawn on reports that a sale of its Post cereals business to US firm Ralcorp Holdings is imminent.
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The US food giant is reported to be holding talks with Ralcorp on setting up a “stock-based transaction” to reduce the tax burden for both parties.
Such a deal could be manufactured by spinning off the Post business and then combining it with Ralcorp, the Wall Street Journal said, citing unnamed sources. Kraft shareholders would then have a stake in the merged business.
However, a Kraft spokesperson remained coy about the reports. “We don’t comment on rumours or speculation, and don’t have anything to specific to report,” the spokesperson told just-food last night (5 November).
The spokesperson added: “As pointed out during various earnings calls, we continue to evaluate our brands and businesses in terms of our long-term growth plan, using several criteria: growth potential, relative market share and profitability.”
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By GlobalDataSpeculation over the future of Post, the third-largest cereals business in the US, first emerged in the summer. Kraft has steadfastly remained tight-lipped over the future of the unit, which produces brands including Grape Nuts and Shredded Wheat.
