Question

In November 2004, Kraft Foods sold its confectionery business to Wrigley for $1.85 billion cash, which consisted primarily of the following key candy brands: Lifesavers, Altoids, and Crème Savers. This deal is referred to as a: A. Split-off B. Sell-off C. Spin-off D. Carve-out E. None of the above

Answer 1

Answer:

The correct answer is letter "B": Sell-off.

Explanation:

A sell-off is the rapid sale of an asset typically follow by its drastic decline in its value. For example, if ABC corporation releases a bad earning report many of its shareholders may decide to sell their shares. With many sellers and few buyers, ABC stock value will sharply fall.

Kraft Foods Inc., in November 2004, published the sell of its sugar confectionery enterprises because they had discontinued operations. They planned to restructure the organization realigning and lowering the structure cost and optimizing capacity utilization.