NEW YORK-- Kraft Foods, Inc. announced today that its board of
directors unanimously rejected the $11 billion takeover bid by Philip
Morris and Co. A Kraft spokesman stated in a press conference that the
offer was rejected because the $90-per-share bid did not reflect the
true value of the company.
Wall Street insiders, however, tell quite a different story.
Apparently, the Kraft board of directors had all but signed the takeover
agreement when they learned of Philip Morris' marketing plans for one of
their major Middle East subsidiaries. To a person, the board voted to
reject the bid when they discovered that the tobacco giant intended to
reorganize Israeli Cheddar, Ltd., and name the new company Cheeses of Nazareth.