Give credit where due; Procter & Gamble (NYSE:PG) lost no time moping about the disintegration of its deal with Diamond Foods (Nasdaq:DMND) to sell its Pringles business in a complicated $2.4 billion. In short order, P&G found a willing buyer and will be selling this iconic potato chip business to Kellogg (NYSE:K) for about $2.7 billion in cash.
The Terms of the Deal
Unlike the convoluted reverse Morris Trust structure that Diamond and Procter & Gamble were going to use to save taxes for P&G, the Kellogg deal is much more straightforward. Kellogg will pay $2.7 billion in cash - actually a bit of a discount to what Kellogg would have had to pay to match the after-tax price that Diamond was originally offering.
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