InvestIdeas

Hi folks,

Understand that this forum is built to share information.
However, I need some help here on the offer document for the exchange of Kraft Food shares to Ralcorp Holdings shares.

Any one has any views or comments on the document?
I tried to read through, but the document is a tad lengthy for me to "digest"

thanks in advance

Hehe, paiseh, I don't follow Kraft, so no idea.

yo, can Kazataza post e info./ parts of e offer doc. here??

i'm not sure on Kraft, my little impression is that they do a lot of M&A as growth drivers; previously in march, one of their asia-pac financial guy was speak'g at e Brands forum.

an old article, pulled from AP - 25june:

NORTHFIELD, Ill. (AP) - Food maker Kraft Foods Inc. said Wednesday it has begun an exchange offer for the sale of its Post cereals business to a subsidiary of private-label food maker Ralcorp Holdings.

Under terms of an agreement reached in November, Kraft will first split off or spin off Post and its assets to shareholders through a subsidiary called Cable Holdco. The Post cereals business will then be combined with Ralcorp.

In the split-off piece of the deal, Kraft said its shareholders will be able to exchange some or all of their Kraft shares and receive shares of stock in Cable Holdco.

The Cable Holdco stock will then be immediately exchanged for shares of Ralcorp on a one-for-one basis following the merger of Cable Holdco and a Ralcorp subsidiary.

Kraft said Kraft shareholders will own up to 0.6613 shares of Ralcorp for each Kraft share exchanged.

The exchange offer will expire on Aug. 4 and will coincide with the closing of the Ralcorp deal.

As a result of the offer, Kraft said the number of its outstanding shares will be reduced.

Kraft said about 30.5 million shares of Cable Holdco will be offered in exchange for Kraft common stock.

Once the deal is complete, Kraft shareholders are expected to own about 54 percent of the new Ralcorp with Ralcorp shareholders owning about 46 percent.

Kraft Foods shares rose 29 cents to close $29.25. Ralcorp shares rose 6 cents to $50.74 in after-hours trading. During regular trading, Ralcorp shares fell $1.32 to close at $50.68.

Hi Sansan

yes...that's the offer document i'd received....

will try to extract the information out and post to share....
pai seh ah...cos 1st time i'm holding non-employee US stock..so very blur and got a shock when i see the words on the offer doc..


by the way, in this kind of situation will there be an independent analyst report on whether to take up the offer or not, like acquisition for SG stocks?

Thanks a lot.

Some discussions on other message boards. You'll probably have to Google up a bit to see what others are saying. I'd suggest SeekingAlpha but having looked there, nobody has blogged about it.

Morningstar:
http://socialize.morningstar.com/NewSoc ... 37081.aspx

grandrake

thankies a lot for the link....pai seh that i didnt make enuff effort cos too bz with work this month

will try to look up more info over the weekend....

yo kazataza,

what wld u decide on (by 4-august)?

maybe u can outline your thoughts-process here (so as to share w us)? we all can certainly learn something fr you.

i attended this brands finance forum in march; mr. Sam Beni was e speaker, erm, maybe u do your "research" appropriately ... yeah? [hint**]

- Mr Sam Bedi, Executive Director of Makara Capital; Ex-Director of Strategy for Kraft Foods Asia Pacific

had tried to do a bit of research over the weekend..but work is really taking up my time....really a bad timing to receive such offer document at such time...

from what i gathered, many retail shareholders are having difficulty to grasp the cheem words used in the offer doc..

as highlighted previously, Kraft said Kraft shareholders will own UP TO 0.6613 shares of Ralcorp for each Kraft share exchanged (dependent on the take-up rate)

Here's what i gather from other forums:

- if the take-up rate is low, the residual balance will be given to Kraft shareholders free
- Ralcorp will take over the debts of Post and is unlikely to give out any dividends in the near future
- Kraft meanwhile will still be a "dividend company'

thinking of just keep the Kraft shares...any other different opinions out there?


Sansan,
pai seh leh..i a bit slow..don't get your hint leh....can hint more more?



as getting bz with work..my reply might take some time....really pai seh..cos like i'm seeking for advice and not responding much at the same time...

pal, good to be bz as beez.

sent u a PM on this, if e contacts help. (it really deps on how proactive u r for info.)

so, pen your thoughts to us.

Q: is this one of your trades, in your experience, that proved esp. difficult on an emotional level? other than e cheem jurgon?

beats top line by ~usd480mil but misses bottom by 2 cents

*********

Kraft Foods Q2 profit rises; revenue up 21.4%; revises FY08 outlook
7/28/2008 7:42 AM ET

(RTTNews) - Kraft Foods Inc. (KFT: News, Chart, Quote ) on Monday reported second-quarter net earnings of $732 million, or $0.48 per share, compared with $707 million, or $0.44 per share, a year ago.

During the quarter, the company incurred $0.05 per share in asset impairment, exit, implementation and other costs, compared to $0.06 in the same quarter a year ago. The company also incurred $0.04 in losses on the divestiture of certain biscuit assets that was required as part of the company's LU biscuit acquisition.

Second-quarter earnings per share excluding items were $0.58, an increase of 16% from $0.50 in the second quarter 2007.

During the quarter, revenues rose 21.4% to $11.18 billion from $9.21 billion in the prior-year quarter.

Analysts were looking for earnings of $0.50 per share on revenues of $10.70 billion.

Going ahead, Kraft has raised its outlook for 2008 organic net revenue growth to at least 6%, up from a previous expectation of at least 5% as a result of further pricing actions to offset rising input costs.

Additionally, the company now expects 2008 earnings per share of at least $1.54, down from the previous expectation of at least $1.56, reflecting better-than-expected growth from operations, offset by a $0.04 loss on the divestiture of certain biscuit assets.

Excluding items, the company now expects earnings of at least $1.92 per share versus at least $1.90 previously to reflect better-than-expected growth from operations.

Analysts project full-year 2008 earnings of $1.89 per share.