Kraft Gets IRS Nod for Spin-off
Kraft Foods Inc. (NYSE: KFT) announced this morning that it has received a “favorable private letter ruling” from the US Internal Revenue Service “confirming the tax-free status of the planned spin-off of the company’s North American grocery business and certain…
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The proposed split would create a $35 billion snack food company with brands like Oreo, Cadbury, Tang, and Trident, and a $14 billion grocery business that would continue to supply grocers with Maxwell House coffee, Jell-O, and Philadelphia-brand cream cheese.
One investor who is not excited by the news is Warren Buffett, who recently reduced his holdings of Kraft shares from 87 million to 78 million. Buffett never liked the deal Kraft made for Cadbury and has been lightening his holdings of the food giant ever since.
Paul Ausick
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Paul Ausick has been writing for 247Wallst.com for more than a decade. He has written extensively on investing in the energy, defense, and technology sectors. In a previous life, he wrote technical documentation and managed a marketing communications group in Silicon Valley.
He has a bachelor's degree in English from the University of Chicago and now lives in Montana, where he fishes for trout in the summer and stays inside during the winter.
