Kraft plans $8.7bn flotation plan

Kraft Foods, which owns the Maxwell House, Philadelphia and Dairylea brands, is planning a $8.7bn (£6.07bn) flotation on the New York Stock Exchange.

The company, which is owned by tobacco giant Philip Morris, has filed an application with the Securities and Exchange Commission, setting out plans to sell 280m shares at $26-$31 (£18.14-£21.62) each.

The flotation will be the second biggest in Wall Street's history -- AT&T raised $10.6bn (£7.39bn) in an IPO in April last year.

Philip Morris will retain about 50% of Kraft shares after the IPO, which the company hopes to complete by the end of the second quarter, according to reports.

Kraft is the second-largest food company in the world, behind Nestle. Its UK adspend was £30.69m in 2000.



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