CHICAGO: Edelman Public Relations is expected to pick up IR and
other communications work associated with Kraft Foods planned dollars 5
billion stock offering.
Edelman is Kraft's long-time agency of record, but some Kraft observers
had speculated it might turn to BSMG's FRB unit, an IR specialist, to
complete its IPO. Industry watchers estimated fees for the project could
easily be in the mid-six-figure range.
In its April 17 quarterly earnings statement, Kraft parent Philip Morris
said it hoped to stage the food company's IPO by the end of the second
Wall Street watchers had predicted Kraft's shares might be a safe buy
for investors spooked by recent stock market weakness. But even after
the stock sale, Kraft will be controlled by Philip Morris, which means
protests and boycotts by anti-smoking groups such as INFACT could still
affect its share price.