Kraft Foods Inc (KFT.N) Chief Executive Irene Rosenfeld is breaking up the food giant, just 18 months after driving through the controversial acquisition of UK chocolate maker Cadbury. The split will give investors the opportunity to bet on a snacks business that is growing quickly in emerging markets, or opt for the stable dividends offered by a slower growing general grocery business that includes Oscar Mayer lunch meat and Kraft cheese. The move comes weeks after billionaire investor Nelson Peltz disclosed a 12.2 million share stake in Kraft. Peltz, whose Trian Fund Management holds the stake, supported Kraft's bid for Cadbury, in which he also owned a stake. Both Peltz and Warren Buffett, another influential shareholder, supported the split, CNBC reported. Neither could immediately be reached by Reuters.
Kraft Foods Inc. (Kraft Foods) manufactures and markets packaged food products, including biscuits, confectionery, beverages, cheese, convenient meals and various packaged grocery products. Shares of KFT traded higher by 3.24% or $1.11/share to $35.41. In the past year, the shares have traded as low as $28.85 and as high as $36.02. On average, 9064560 shares of KFT exchange hands on a given day and today's volume is recorded at 23904204.
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