Kraft to split off Post cereals business

Tag : cable maker
NORTHFIELD, Ill. -
Foodmaker Kraft Foods Inc. on Monday said it will split off its Post Cereals business, a movefirst announced in November.
Kraft will distribute via a split-off deal all outstanding sharesof its subsidiary Cable Holdco Inc. that will own some assets andliabilities of its Post cereals business.
Cereal maker Ralcorp Holdings Inc. (nyse: RAH - news - people )'s Ralcorp Mailman LLC unit will combine with Cable Holdco Inc.
In November, Kraft said it would sell two dozen Post cereal brandsto Ralcorp for $1.7 billion in stock. Kraft will own 54 percent ofthe company.
About 30.4 million shares of Cable Holdco will be offered inexchange for Kraft common stock in the offer. It will be subject toproration if it is oversubscribed and the number of shares Kraftaccepts may be less than the number of shares tendered.

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