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Kraft narrows IPO terms
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May 11, 2001: 12:43 p.m. ET
Foodmaker's offering now set to raise $8.4B; deal seen pricing June 13
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NEW YORK (CNNfn) - Kraft Foods Inc. on Friday narrowed the terms of its planned initial public offering, which can now raise as much as $8.4 billion.
Kraft, which is being spun off by tobacco marketer Philip Morris Cos. (MO: down $0.12 to $52.20, Research, Estimates), now plans to offer 280 million shares at $27 to $30 each via lead underwriters Credit Suisse First Boston and Salomon Smith Barney. Earlier this month, Kraft had filed to raise $8.7 billion, planning to sell 280 million shares at $26 to $31.
The IPO is now expected to price June 13 and trade June 14, underwriters on the deal said. The foodmaker plans to trade on the New York Stock Exchange under the symbol "KFT."
Even at a lower range, Kraft is still on track to be the largest IPO this year and the biggest U.S-based offering since the $10.6 billion AT&T Wireless (AWE: up $0.14 to $18.90, Research, Estimates) deal last year.
In March, Kraft initially filed to raise as much as $5 billion. The company, whose products include Oscar Mayer hot dogs and Jell-O gelatin, didn't specify the number of shares it would offer at that time.
Parent company Philip Morris will own 49.5 percent of the Class A stock and 100 percent of class B. Philip Morris will also hold 97.7 percent of combined voting power.
Northfield, lll.-based Kraft plans to use part of the proceeds to pay off an $11 billion note to Philip Morris.
Underwriters on the deal were granted a green shoe, or an over-allotment option, to buy an additional 28 million shares
Kraft, which employs about 117,000 people, is the largest branded food and beverage company in the U.S. The company had $34.7 billion in pro forma operating revenue and $4.6 billion operating income in fiscal 2000. 
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