Kellogg (K) shot up over 5% on news that the food manufacturer would take over Diamond Food’s (DMND) failed deal with the chip company. Kellogg will pay P&G almost 2.7 billion for ownership of Pringles.
“In April, Procter & Gamble signed a deal with Diamond Foods, which agreed to buy Pringles for roughly $2.4 billion, mainly in stock. Diamond, which had previously bought Pop Secret and Kettle brand potato chips, heralded the purchase and played up Pringle’s global presence and influence in grocery stores.
But the deal got delayed, as Diamond was ensnared by an accounting scandal after short-sellers started to raise questions last year about its payments to walnut growers. Shares of Diamond soon began to drop, losing more than half their value.”
via Kellogg to Buy Procter & Gamble’s Pringles Group – NYTimes.com.