Wonder if they are setting this up for a future ultimate split of company into two totally separate units, including two separate dividend paying entities. If so, one or both divisions could then be small enough to be a takeover/purchase target. Pure speculation on my part, but if it turned out to be true, it could send the combined share price out past the solar system.
Another spinoff less than two years after the first spinoff must make folks wonder. Sure way to unload less profitable product lines plus shed some debt while at it---wouldn't want to hold shares of the spinoff that at birth has such downside because fer sure there will be better alternatives in the market. What happens to the div? Besides, got to give the spinoff company some prized products, so dilution by separation. Of course if spinoff is announced, KRFT must address my concerns, otherwise I will sell both. Just my nonpro humble opinion.
Motley Fools article below, came out yesterday, confirming my prediction made on July 30th:
Post-Split, Kraft Foods Continues to Shuffle Brands
By Mike Thiessen - August 16, 2013
Less than a year after its blockbuster split with now-independent Mondelez International (NASDAQ: MDLZ), Kraft Foods (NASDAQ: KRFT) has announced plans to separate its already-truncated roster of brands into two distinct divisions. Although the internal split technically occurred in early July, its impacts continues to be felt throughout the company and beyond. It is entirely possible that this move will set up a future spin-off that sees Kraft Foods split into two distinct entities.
Yikes! Just can't be good news. Your speculation that became a prediction that became reality don't sound good. We are experiencing a marketwide "correction"/selloff, plus end of QE can't be far away, what horrible timing! It is my speculation which I hope don't turn into prediction for later reality that splitsville will make us poorer, not better. Don't want to divide the well-known/established KRFT family of products into two separate companies, each taking its own piece of the pie and therefore winding up with less.
Upon third thought you may be on to something. I'm thinking of ABT/ABBV split. ABT loaded up ABBV with massive debt as part of splitsville. Me thinks it was ABT's way of eliminating huge chunk of debt more so than releasing value, but now-debt-heavy ABBV has had a better run so far.
KRFT is doing well since the split, don't see reason for resplit. I'd be wary of news re: another split, especially after KRFT splitting from MDLZ just less than eight months ago. If another splitsville and this soon, we may wind up owning lesser parts than had we kept the whole thing.
I did not say there was a split coming-"Pure speculation" as the possible ultimate future, as I said in my post regarding the new divisions being created. What is not speculation, is the news of June 14, 2013 of two new business units (Meals/Enhancers and Enhancers and Snack Nuts) being created July 1, 2013, which begin separate earnings reports at the conclusion of Q3 2013.