Market News

Kraft Sets Up to Sell Two Units

In what investment banking sources are predicting to result in a US$200-million bidding war, Kraft Foods Inc. is considering selling two of its principal domestic units. Canada’s biggest pasta makers are expected to compete in this transaction with income trusts. The Primo line of pastas, sauces, soups and cooking oils and the Del Monte canned vegetables and canned and jarred fruits lines are believed to be the units that are poised to go on the block. The two units together did $300 million in sales last year. Kraft tried to sell these businesses four years ago, but took the divisions off the market when they didn’t attract the desired price. Source: Canadian Grocer E-Newsletter Aug. 12, 05.