Altria spins off Kraft Foods
The Marlboro Men, also known as Altria, who still own about 29 percent in SABMiller, have spun off their 89 percent stake in Kraft Foods Inc. on 30 March 2007, divesting themselves completely of their interest in the largest North American Food company.
After selling its stake in Kraft, Altria’s remaining holdings will be the ownership of Philip Morris USA and Philip Morris International, which make Marlboro and other cigarettes plus the stake in brewer SABMiller.
It seems that most analysts hold a favourable view of Altria without Kraft. Kraft has struggled to generate sales growth with a portfolio that some analysts consider too broad. Chief Executive Irene Rosenfeld, meanwhile, failed to generate much enthusiasm for Kraft when she unveiled her strategy for the company.
“Off-loading” is the flavour of the month
Part of the bullish assumption on Altria is that it may announce plans later this year to break its Philip Morris USA and Philip Morris International tobacco businesses into two separate companies. Analysts also think Altria could conduct a large share repurchase since a large chunk of debt assigned to Kraft will move off Altria’s books.
