Kraft Foods Plans to Split Into Two Companies

[biaggio]

http://online.wsj.com/article/SB10001424053111903454504576487720348267828.html?mod=WSJ_hp_LEFTTopStories

 

Is this going create value?

 

Or are they just wasting energy/effort that they should be using to improve efficiency, quality of their products, etc ?

 

 

 

[ourkid8]

I think this will definitely create tremendous shareholder value as the Global snack business will definitely command a higher multiple then the grocery division based on their growth profiles.  The global snacks business (Oreo, Lu, Cadbury, Milka, Chocolates, Trident gum)  is growing at a much faster clip globally then the grocery division (Kraft macaroni and cheese, Oscar Mayer meats, Philadelphia cream cheese, maxwell house coffee) which is predominately in North America.  

 

This is a 'similar' move that Altria recently did by spinning off Philip Morris International...

 

Thanks,

 

S

[NormR]

This is a 'similar' move that Altria recently did by spinning off Philip Morris International...

 

Humm, the KFT split is a little unexpected.  I'll soon have 4 stocks formerly known as MO.  :D