Final proration factor in Kraft split-off of Post is 8.0255%

By Lisa Kerner

Charlotte, N.C., Aug. 7 - Kraft Foods Inc. said the final proration factor related to the split-off of its Post cereals business is 8.0255%.

According to Kraft, 568,543,287 of its shares were tendered in an exchange offer for 30,466,805 shares of Cable Holdco, Inc., a Kraft subsidiary.

Kraft accepted 46,119,899 of its common shares, the total number of shares offered in the exchange.

Under the terms of the offer, 0.6606 shares of Cable Holdco were exchanged for each Kraft common share accepted in the offer, a Kraft news release noted.

The Cable Holdco common stock was then exchanged for shares of Ralcorp Holdings, Inc. common stock on a one-for-one basis following the merger of Cable Holdco and a Ralcorp subsidiary.

Kraft said that shareholders who tendered their Kraft shares in the offer now own 0.6606 shares of Ralcorp for each Kraft share accepted for exchange, following the merger of Cable Holdco into a Ralcorp subsidiary.

It was previously reported that the merger is valued at $2.6 billion, including the issuance of Ralcorp common shares and the assumption of debt.

Ralcorp acquired the Post cereal manufacturing plants in Battle Creek, Mich., Jonesboro, Ark., Modesto, Calif., and Niagara Falls, Ont., and retained the employees at the facilities.

In November 2007, Kraft, a Glenview, Ill., food and beverage company, announced it would distribute and merge its Post cereals business into Ralcorp.

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