1. Kraft, the food giant, is shedding its Post cereals biz in a complex $2.9 billion transaction with Ralcorp to focus on other promising, growing brands.
2. It has structured the deal in a way that minimizes taxes, making it the equivalent of a $4 billion cash deal.
3. In the all-stock deal, Kraft shareholders will get Ralcorp shares and end up owning 54% of the new company.
[1. Kraft had already exited brands like Milk-Bone, Cream of Wheat and Minute Rice in a bid for reliable growth.
2. It is delivering on the restructuring promised to shareholders earlier this year.]
[Click here for full story at: BUSINESSWEEK.COM]
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