Bristol-Myers (NYSE: BMY) does not see much future in baby food. It is trying to sell its operation to a company where its is a better fit. According to the FT, that includes Pepsi (NYSE: PEP) and Kraft (NYSE: KFT). BMY wants as much as $9 billion for the business.
The reason behind the sale is that BMY wants to become a specialty drug company, driven by bio-pharmaceuticals. That works unless it doesn’t. There is some advantage to diversity.
Douglas A. McIntyre