Altria spins off Kraft |
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Fri, 30 Mar 2007 23:31
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CHICAGO (AP) - Kraft Foods Inc. became an independent company after the close of trading Friday, when Altria Group Inc. spun off its remaining stake in the world's second-largest food and drink company.New York-based Altria Group Inc., which owns the tobacco companies that make Marlboro cigarettes, also owned an 88.9 percent stake in Kraft Foods Inc. Kraft makes its namesake cheeses, Oscar Mayer hot dogs, Maxwell House coffee, Jell-O and Oreo cookies.Northfield, Ill.-based Kraft, which became a publicly traded company in 2001, will join the S&P 500 index.'Our board, executive team and 90,000 employees are energized and ready to write this new chapter in Kraft's history,' spokesman Charles Simpson said in a statement Friday. 'We are thrilled with the opportunity to stand on our own as a fully independent company, and are prepared to take advantage of greater financial flexibility to get our business growing faster.'Altria shareholders will receive about 0.69 of a Kraft share for each Altria share.Altria, which owns Philip Morris USA, has said the split helps Kraft's ability to make acquisitions, while allowing managers to focus their respective businesses and giving both companies greater debt capacity.Kraft planned to begin a two-year, $5 billion share repurchase program upon completion of the spinoff.Company officials plan to be in New York Monday to ring the opening bell on the New York Stock Exchange to mark Kraft's first day of trading as a fully independent company.Philip Morris USA is the biggest cigarette maker in the nation, selling the Virginia Slims, Parliament and Basic brands in addition to Marlboro.Analysts said the New York-based company could split its domestic and international Philip Morris tobacco divisions later this year.Kraft shares rose 14 cents to close at $31.66 Friday on the New York Stock Exchange. Altria shares gained 67 cents to $87.81 on the NYSE.Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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Altria sets Kraft distribution ratio 