Altria Group officials have announced that it has finalized the plan to move the company's 89 percent stake in Kraft Foods on March 30.
According to the terms of the agreement, Altria shareholders will receive a 0.7 share of Kraft for each Altria share they own. "As an independent entity, Kraft can increase its debt to fund acquisitions," company officials said.
Though the spin off strategy was reported in 2005, Altria (formerly Philip Morris) refrained from continuing its plan until it received favorable rulings in several tobacco liability lawsuits, reports Meatingplace.com. This final deadline caught several analysts off guard, because of it's suddenness.
Source: Altria, Meatingplace.com