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• Tobacco Firm to Buy Nabisco for $14.9 Billion 

The announcement comes at a time when many of the largest players in the slow-growing food business have been looking to consolidate in order to cut costs, boost sales and increase their clout with grocery retailers. At the same time, Philip Morris, the world's biggest tobacco company, signaled that the deal will help lift the cloud of smoking-related lawsuits that has been a drag on its food business. . .

Analysts say the planned stock sale sets the stage for Philip Morris to completely separate its food concern from its tobacco business, which is facing billions of dollars in legal settlements and other lawsuits that are pending. A spinoff would free the highly profitable Kraft from the depressing effects of ongoing anti-tobacco litigation and regulation.

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