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Is Altria Readying For The Next Spinoff?  

Tobacco firm Altria Group lit up Wall Street on Tuesday when the company, which makes Marlboro cigarettes, among other brands, told investors that it's shuttering a manufacturing plant in Cabarrus, N.C., as it moves U.S.-based cigarette production for non-U.S. markets to Europe. Stock watchers think the strategic move could signal that the company is readying itself to spin off its Philip Morris International unit.

Altria said it expects to be able to offer positions in Richmond, Va., to most of the 2,500 North Carolina-based hourly employees and many salaried employees. Those workers displaced by the changes, the company said, will be eligible for three to 20 months' severance pay and benefits.

But Wall Street cares about profits, not people, so what's the impact of the move on Altria's bottom line? The company said it expects cost savings

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State: Lerner's affiliations 

Kraft Foods Inc. Northfield, Ill. Board of directors; audit committee; nominating and governance committee Stock and board fees worth about $489, 000 in 2005-2007 Makes processed food, seeks healthier products to combat obesity and diabetes.

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Notables From the Altria Shareholder Meeting - Seeking Alpha 

Todd Sullivan submits: There were a couple of very important items discussed and disclosed at Altria Group's (MO) annual meeting today. Here they are with opinion.

CEO Camilleri:

Over the next several months, we will continue to carefully and diligently examine the benefits of a spin-off of Philip Morris International [PMI] and other possible value-enhancing options to decide the optimal long-term strategic course to follow. . . .

PM USA continues to be the only major cigarette manufacturer supporting regulation of the tobacco industry by the U.S. Food and Drug Administration (FDA). This February, legislation was introduced in the U.S. Congress that would grant the FDA comprehensive regulatory authority over all tobacco products sold in the United States. We believe that this proposed legislation offers the prospect of effectively reducing harm and providing real solutions to the many complex issues involving tobacco.

Altria and Philip Morris USA (PM USA) believe regulation of tobacco products by the Food and Drug Administration [FDA] would establish a comprehensive national tobacco policy that could potentially create a competitive framework within which manufacturers are focused on reducing the harm tobacco use causes. The companies believe regulation would also bring predictability and clear standards to the tobacco industry in the United States.

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Altria Group, Inc. Holds 2007 Annual Meeting of Shareholders 

ria Group, Inc. (NYSE: MO) held its 2007 Annual Meeting of Shareholders here today, and its chairman and chief executive officer Louis C. Camilleri told an audience of approximately 200 shareholders that the company remains as committed as ever to meaningfully enhance long-term shareholder value.

"Over the next several months, we will continue to carefully and diligently examine the benefits of a spin-off of Philip Morris International and other possible value-enhancing options to decide the optimal long-term strategic course to follow," Mr. Camilleri said. "Once a decision has been made, we will promptly communicate it."

"The highlight of the past year was undoubtedly the spin-off of Kraft Foods, which we completed on March 30," Mr. Camilleri said. "Achievements on the litigation front over the past year were particularly noteworthy, and confirmed our successful record in the appellate courts."

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• Altria Says No Rush to Spin Off Overseas Tobacco Unit (Update5) 

Altria Group Inc. won't rush to spin off its international tobacco unit while studying options to increase the share price, its chief executive officer said.

``This decision is for the next 50 years,'' not ``the next 50 days or the next five years,'' Louis Camilleri said today at Altria's annual meeting in East Hanover, New Jersey.

Altria, the world's largest traded tobacco company, will consider separating the international and U.S. tobacco units over the next several months, Camilleri said. The move, sought by some investors, would allow the international division to buy more competitors and repurchase shares.

``Altria's board has been very cautious,'' said Brian Barish, who oversees $10 billion, including 3 million Altria shares, at Cambiar Investors LLC in Denver. The spinoff ``may be a 2008 event,'' he said.

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• 100+ Youth to Demonstrate at Altria/Philip Morris Annual Meeting; Call to 'Quarantine' Company 

Governments must effectively quarantine Altria/Philip Morris, the world's largest multinational tobacco company, by passing legislation to stop the spread of the global tobacco pandemic. That's the message of more than 100 youth and adult tobacco control advocates from 13 states who will hold a colorful demonstration outside the Altria shareholders' meeting in New Jersey (April 26) and company headquarters in New York City (April 27) in a show of global solidarity against the tobacco industry. Philip Morris's parent company has recently spun off its Kraft affiliate, and there is widespread speculation that Philip Morris International and Philip Morris USA will separate soon. "The proposed breakup of Philip Morris poses the risk that Philip Morris International will become even more effective at spreading its toxic product," says Anna White of the corporate accountability group Essential Action, "An independent Philip Morris International, which is likely to be based in Switzerland, will no longer feel constrained by public opinion, or the possibility of domestic regulation or litigation, in its home country and most important market, the United States."

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Corporate Accountability International Activists From Across Globe Confront Philip Morris/Altria Executives At Annual Shareholders' Meeting 

As Philip Morris/Altria executives try to paint a picture of a rosy future at the corporation's annual shareholders' meeting, the worldwide challenge to the corporation's abuses continues to build. The global tobacco treaty, which bans tobacco advertising, promotion and sponsorship, has now been ratified by 146 countries. Health advocates are cataloguing examples of the tobacco giant's interference with implementation of the treaty and are challenging the corporation directly today. Today's annual meeting takes place against the backdrop of the Kraft spin- off, which has been described as a bittersweet victory for public health.

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• Altria Group, Inc. Holds 2007 Annual Meeting of Shareholders 

Altria Group, Inc. (NYSE: MO) held its 2007 Annual Meeting of Shareholders here today, and its chairman and chief executive officer Louis C. Camilleri told an audience of approximately 200 shareholders that the company remains as committed as ever to meaningfully enhance long-term shareholder value.

"Over the next several months, we will continue to carefully and diligently examine the benefits of a spin-off of Philip Morris International and other possible value-enhancing options to decide the optimal long-term strategic course to follow," Mr. Camilleri said. "Once a decision has been made, we will promptly communicate it."

"The highlight of the past year was undoubtedly the spin-off of Kraft Foods, which we completed on March 30," Mr. Camilleri said. "Achievements on the litigation front over the past year were particularly noteworthy, and confirmed our successful record in the appellate courts."

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Altria Group, Inc. to Spin-off Kraft Foods Inc. 

The Board of Directors of Altria Group, Inc. (NYSE: MO) today voted to authorize the spin-off of all shares of Kraft Foods Inc. (NYSE: KFT) owned by Altria to Altria's shareholders.

The distribution of the approximately 89% of Kraft's outstanding shares owned by Altria will be made on March 30, 2007, to Altria shareholders of record as of 5:00 p.m. Eastern Time on March 16, 2007 (the "record date").

Altria will distribute approximately 0.7 of a share of Kraft for every share of Altria common stock outstanding as of the record date, based on the number of Altria shares outstanding on that date. Altria shareholders will receive cash in lieu of fractional shares for amounts of less than one Kraft share. The exact distribution ratio will be determined on the record date.

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Kraft Down On Debut  

Shares of Kraft fell approximately 2% on Monday, the first session since Kraft became an independent company.

Kraft Foods became an independent company after the close of trading Friday, when Altria Group spun off its remaining stake in the world's second-largest food and drink company.

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Kraft Shares May Fall as Investors Bet on Marlboros (Update4) 

Shares of Kraft Foods Inc., the foodmaker spun off today by Altria Group Inc., may fall as investors bet that selling cookies will yield less growth than peddling cigarettes.

Kraft shares dropped 11 percent this year as some Altria holders shorted, or bet against, the world's second-largest food company and the maker of Oreos. They may head lower as Altria, which makes Marlboro cigarettes, distributes 1.5 billion Kraft shares, spurring investors who favor tobacco to sell the stock.

``Some holders with a very positive view on tobacco will get rid of their Kraft shares,'' said Michael Embler, chief investment officer at Franklin Mutual Advisors in Short Hills, New Jersey. The firm owned 10.2 million shares of New York-based Altria as of Dec. 31 and shorted Kraft last year, he said.

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• Altria Group, Inc. Completes Spin-off of Kraft Foods Inc. 

Altria Group, Inc. (NYSE: MO) today completed the spin-off of Kraft Foods Inc. (NYSE: KFT) to Altria shareholders.

The distribution of the approximately 88.9% of Kraft's outstanding shares owned by Altria was made today, to Altria shareholders of record as of 5:00 p.m. Eastern Time on March 16, 2007 (the "record date").

Altria shareholders received 0.692024 of a share of Kraft for each share of Altria common stock held as of the record date. Altria shareholders will receive cash in lieu of fractional shares for amounts of less than one Kraft share.

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• Kraft Shares May Fall as Investors Bet on Marlboros (Update2) 

Shares of Kraft Foods Inc., the foodmaker being spun off today by Altria Group Inc., may fall as investors bet that selling cookies will yield less growth than peddling cigarettes.

Kraft shares dropped 12 percent this year as some Altria holders shorted, or bet against, the world's second-largest food company and the maker of Oreos. They may head lower as Altria, which makes Marlboro cigarettes, distributes 1.5 billion Kraft shares, spurring investors who favor tobacco to sell the stock.

``Some holders with a very positive view on tobacco will get rid of their Kraft shares,'' said Michael Embler

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• Tobacco Companies Show Resilience 

Litigation risks that have dogged the industry have receded to a point that earlier this month Moody's raised its rating outlook for American tobacco companies for the first time in five years to stable.

"Although the number of outstanding lawsuits still remains significant, the types of cases have proven to be more manageable," Janice Hofferber and Angela Jameson of Moody's wrote in a March 8 report.

Two of the sector's bigger legal threats _ a case brought by the Department of Justice and the so-called Schwab "lights" case _ are both being appealed. Those and other remaining cases are less threatening to the industry in part, analysts say, because previous cases have built legal precedent, thus increasing the companies' ability to predict how courts will rule.

Further, tobacco consumption is declining at a slower rate, according to Moody's.

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Altria Group, Inc. Announces Distribution Ratio for Spin-off of Kraft Foods Inc. 

Altria Group, Inc. (NYSE: MO) today announced the distribution ratio for its previously announced spin-off of Kraft Foods Inc. (NYSE: KFT). Altria shareholders will receive 0.692024 of a share of Kraft for each share of Altria common stock held as of 5:00 p.m. Eastern Time on March 16, 2007 (the "record date").

On March 30, 2007, Altria will distribute all of the shares of Kraft that it owns, representing approximately 88.9% of Kraft's outstanding shares as of the record date. Altria shareholders will receive cash in lieu of fractional shares for amounts of less than one Kraft share.

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