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Kraft: Are two raiders better than one?

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Raider Nelson Peltz bought a piece of Kraft Foods Inc. (NYSE: KFT). The shares went up some and then settled back. He wants to streamline the company, sell off underperforming assets, and make better use of cash. That is pretty much a canned speech for Nelson and his peers.

Yesterday, Kraft's CEO said she she would meet with Nelson. He can share all of his plans, most of which have probably occurred to the board already.

At the same time the company announced that it would have the meeting, the press found out that Carl Icahn has a stake in the company. It's not clear yet what his plans are, but he probably did not buy shares because he likes the artwork on the stock certificates. Kraft jumped 3% late in the day on Friday.

The news put Kraft into a rare position. If Peltz and Icahn have different goals for the company, it may actually be easier to turn them both down. Kraft can't do everything for everyone. But, if the two old hands decide to take the same path to getting the company to cough up cash for a share buyback or special dividend, Kraft has a problem.

Douglas A. McIntyre is a partner at 24/7 Wall St.

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Last updated: November 13, 2009: 01:18 AM

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