Is this what Alanis Morissette would call “ironic”? Diamond Foods (DMND) used improper accounting that propped up its earnings as the company got ready to buy Pringles from Procter & Gamble (PG), according to an internal report by the company. But in the end, it was the sketchy accounting that torpedoed the deal, and Diamond’s top executives. Okay, maybe not really “ironic,” just “bad” or “sad”.
Today, the Diamond deal officially fell apart, and Procter & Gamble got a new dance partner.
Kellogg (K) announced that it will pay $2.7 billion to buy the aggressively non-greasy potato chips today. The makret clearly likes the deal; Kellogg shares are already up 4% in early action. “Pringles is an excellent strategic fit for Kellogg Company. It significantly advances the company’s goal of building a global snacks business on par with its global cereal business,” the company said in a release.
But will Pringles and Cheez-it, another Kellogg brand, get along? If you were a snack food, would you like the new guy who bragged about how clean he was all the time?
No comments:
Post a Comment