Altria Group, the parent company of cigarette maker Philip Morris, authorised the spin-off of all shares of Kraft Foods owned by Altria to Altria's shareholders.

Altria Group yesterday announced that it would spin off the 89 per cent stake it still holds in Kraft Foods on 30 March 2007, in the first step of a restructuring plan aimed at increasing shareholder value. Louis Camilleri, Altria’s chairman and chief executive, refused to comment on the next move, but analysts speculated that Philip Morris’s prosperous international arm would be split from its less profitable American operations.
Under the terms of the Kraft demerger, investors will get 0.7 shares of Kraft for each Altria share. Immediately following the distribution of Kraft shares, Altria intends to adjust its dividend so that Altria's shareholders who retain their Kraft shares will receive, in the aggregate, the same dividend amount that existed before the transaction.
In its full year report 2006, Altria reports an increase of diluted earnings per share from continuing operations of 12.0 per cent to US$ 5.71 versus US$ 5.10 in 2005. (pi)