Kraft-Philip Morris Deal Revisited

An experienced business executive and board member, Paul Liska has held leadership roles in a number of large corporations. While a senior executive at Kraft, Paul Liska was involved in the company’s acquisition by Philip Morris in a deal worth $13.1 billion.

In 1988, Philip Morris purchased Kraft at a price of $106 per outstanding share. This is was $9.50 per share higher than the latest closing price before the sale and nearly $41 higher than the shares were trading before the October 17 offer was announced.

The deal was sealed in a meeting between the chairmen of both corporations and their teams after an intense 11-day deadlock. The new combined company dislodged Dutch-British firm Unilever as the largest manufacturer of consumer goods in the world.

No major layoffs at Kraft took place since the products sold by Philip Morris and Kraft did not overlap. Kraft’s headquarters remained in Glenview, Illinois.