Altria Sets Ratio For Kraft Spinoff

Altria Group , the parent of tobacco companies Philip Morris USA and Philip Morris International, announced the distribution ratio for its previously announced spinoff of Kraft Foods.
Altria shareholders will receive 0.692024 of a Kraft Foods share for each Altria share held as of the close of business on March 16.

The shares will be distributed on March 30, with Altria divesting the remaining 88.9% of Kraft that it owns. Altria shareholders will receive cash in lieu of fractional shares for amounts of less than one Kraft share, the company said.

Altria announced the timing for the long-awaited spinoff on Jan. 31. The spinoff will separate Kraft, which makes Oreo cookies, Maxwell House coffee and a host of other products, from Altria's Philip Morris tobacco businesses, which make Marlboro cigarettes.

Analysts also expect Altria to eventually split Philip Morris USA and Philip Morris International into two separate companies, possibly later this year.

Kraft shares are down almost 11% since Jan. 30, the day before the spinoff was announced, while Altria shares are down 2.6%.