Newspaper wrap-up: Kraft (KFT) looking to sell Post cereals

Posted Aug 16th 2007 9:15AM by Eric Buscemi
Filed under: Newspapers, Magazines, PepsiCo (PEP), Goldman Sachs Group (GS), EMC Corp (EMC), Kraft Foods'A' (KFT)

MAJOR PAPERS:

The Wall Street Journal (subscription required) reported that Treasury Secretary Henry Paulson said that the downturn "will extract a penalty on the growth rate" and that "the economy and the markets are strong enough to absorb the losses" without starting a recession.
Kraft Foods Inc (NYSE: KFT) is said to be looking for a buyer of its Post cereal business, and PepsiCo Inc's (NYSE: PEP) name has come up as a possible buyer, reported the Wall Street Journal.
KKR Financial Holdings, a real estate affiliate of Kohlberg Kravis Roberts & Co., wants to delay a $5B repayment in short term debt held by about 15 investors that includes money market funds, and hitting hard at the commercial paper market, reported the Wall Street Journal.
Goldman Sachs Group Inc (NYSE: GS) and Deutsche Bank AG (NYSE: DB) have withdrawn their commitments to underwrite up to $1B to finance films for Metro-Goldwyn-Mayer because of the tightening of the credit markets, reported the Financial Times (subscription required).
Investors buying EMC Corporation (NYSE: EMC), which owns 86% VMware Inc (NYSE: VMW) , on the dip could get a cool 40% discount to VMware's hot shares, effectively buying VMware's 84 cents per share in earnings next year at a P/E of just 42 times, versus the 67 times multiple the market is paying for VMware shares outright, reported the Barron's Online (subscription required) "Weekday Trader" column.

Tags: barron's, barrons, db, deutsche bank, DeutscheBank, emc, financial times, FinancialTimes, ft, goldman sachs, GoldmanSachs, gs, henry paulson, HenryPaulson, kft, kkr, kraft, newspaper, paper, pep, pepsi, periodical, vmw, vmware, wall street journal, WallStreetJournal, weekday trader, WeekdayTrader, wsj

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Reader Comments (Page 1 of 1)

8-16-2007 @ 6:20PM

Oscar said...

Kraft is looking to sell, and Pepsi is a major player in the potential buyout. There are soooo many connections between the two, dig under the skin a little bit and you can see that there are executive connections also. Check out: http://www.newsvisual.com/newsvisual/2007/08/pepsico-ties-to.html