Kraft Foods announces exchange ratio in spinoff of Post cereals business

By Lisa Kerner

Charlotte, N.C., Aug. 1 - Kraft Foods, Inc. said the final exchange ratio for the tax-efficient splitoff of its Post cereals business is set at 0.6606 shares of Cable Holdco, Inc. common stock for each Kraft common share validly tendered and not withdrawn.

It was previously announced in November 2007 that Kraft would distribute and merge its Post cereals business into Ralcorp Holdings, Inc.

According to a Kraft news release, the company's shareholders have the option to exchange their shares of Kraft common stock for shares of Cable Holdco common stock.

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

A total of 30,466,805 shares of Cable Holdco are being offered in the exchange, which is set to expire at 8 a.m. ET on Aug. 4.

Kraft will accept for exchange a maximum of 46,119,899 Kraft common shares, subject to proration.

Kraft Foods is a Glenview, Ill., food and beverage company.

Ralcorp is a St. Louis-based provider of store brand foods.

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