Kraft Foods Group (KRFT)

[EZ2]

Pershing Square backs Kraft split

08/04 12:59 PM

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SAN FRANCISCO (MarketWatch)-- Hedge fund manager Bill Ackman said Thursday he backs Kraft Foods (KFT:$35.0800,$0.7800,2.27%) plan to split the $62 billion company into two. "We believe Kraft (KFT:$35.0800,$0.7800,2.27%) has been underappreciated by the market," Ackman told MarketWatch. "This transaction is great for shareholders and the spin off will help solve that problem." Ackman runs Pershing Square Capital Management, which is known for its value-style investing and for its shareholder activism. As of March 31, Pershing was Kraft's (KFT:$35.0800,$0.7800,2.27%) 10th largest shareholder with 22.2 million shares, or 1% of common shares outstanding. Kraft (KFT:$35.0800,$0.7800,2.27%) outlined plans Thursday to make its global snacks business and North American grocery empire into two standalone companies that would be publicly traded. The split is expected to happen in 2012. Kraft (KFT:$35.0800,$0.7800,2.27%) shares rose 3% to $35.22 in early afternoon trades.