(UPDATE: Adds details paragraphs 3-5)
Jump to full article: Reuters, 2000-10-27
Intro: Nabisco Group Holdings Corp. on Friday said its shareholders approved the sale of its Nabisco Holdings Corp. unit, which makes Oreo cookies and Grey Poupon mustard, to food and tobacco giant Philip Morris Cos. for $55 a share.
Nabisco Group Holdings owns 80.6 percent of Nabisco Holdings, the No. 1 U.S. cookie and cracker maker. Philip Morris agreed to buy it in June.
Philip Morris will create a snack and food behemoth by combining Nabisco with it Kraft Foods unit, helping Philip Morris remain the world's second-largest food company, after Swiss giant Nestle SA .
Philip Morris plans an initial public offering for less than 20 percent of the combined food operations after the deal closes.
The stockholders also approved the subsequent acquisition of parent Nabisco Group Holdings by R.J. Reynolds Tobacco Holdings Inc. for $30 a share. The primary asset of Nabisco Group Holdings after the sale of the Nabisco foods company will be about $11.8 billion in cash.
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