Enter multiple symbols separated by commas

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%.

Contact U.S. News


    Get the best of CNBC in your inbox

    Please choose a subscription

    Please enter a valid email address
    To learn more about how we use your information,
    please read our Privacy Policy.

Don't Miss

U.S. Video

  • Hero miles for military members: Real estate magnate's plea

    Chairman of the Fisher House Foundation, Ken Fisher, discusses the Hero Miles program with CNBC's Dina Gusovsky. During Military Appreciation Month, Fisher is asking every traveler to donate 1,000 of their miles to replenish the Hero Miles programs that is in danger of running out.

  • Cramer shuts down this market's haters

    "Mad Money" host Jim Cramer on why this market can't stop, won't stop.

  • From the battlefield to the boardroom

    Your Grateful Nation is dedicated to helping Special Forces veterans enter the corporate world and Knot Standard provides complimentary suits to vets. Mad Money's Jim Cramer spoke with Rob Clapper, Your Grateful executive director; John Ballay, Knot Standard co-founder and president; Tej Gill, retired U.S. Navy Seal; and Darren McB, active duty U.S. Navy Seal.