By Kristin Jones
Kraft Foods Inc. (KFT) plans to switch its stock exchange
listing to the Nasdaq Global Select Market from the New York Stock
Exchange, the latest salvo in the heated battle for prominent stock
listings.
Kraft previously said it plans to split into two companies by
year's end, when it will create a global snacks company called
Mondelez International Inc. and another business, called Kraft
Foods Group Inc., which will focus on North American grocery
products.
Both companies will trade on the Nasdaq exchange. Mondelez will
trade under the symbol MDLZ, and Kraft Foods will trade under KRFT.
The symbol KFT will be retired at that time. Until the spin-off,
the name and trading symbol will remain Kraft Foods Inc. and KFT,
respectively.
Kraft shares rose 8 cents to $38.23.
The move comes as both stock exchanges have battled for years to
bring in, or poach, listings by offering promotions and other
incentives. The transfer provides the tech-heavy Nasdaq with a
high-profile consumer-products company. It also highlights how
transfer-minded companies are taking advantage of Nasdaq incentives
with a close eye on the bottom lines.
Kraft noted that transfering to the exchange, part of Nasdaq OMX
Group Inc. (NDAQ), is cost-effective. The company recently reported
that its first-quarter earnings rose 1.8% on broad-based sales
growth, including in Europe.
Nasdaq suffered reputational damage recently after Facebook
Inc.'s (FB) initial public offering was marred by glitches. The
company said it planned a one-time payout of around $40 million to
compensate some of the investors who lost money because of exchange
errors.
Interestingly, Kraft's current market cap of $67.8 billion is
close to Facebook's $72.7 billion.
Write to Kristin Jones at kristin.jones@dowjones.com