Talks to Offload Pringle Break Down But BMI Expects Further Moves Soon

According to a report from Bloomberg, Proctor & Gamble has rejected the opportunity to spin off its Pringles business to US snack maker Diamond Foods due to concerns about how the deal would have been structured. The firms were said to have been discussing a deal that would have seen Pringles merge with Diamond and P&G's shareholders take a majority stake in the combined business. This would have allowed P&G to offload the unit in a tax efficient manner. However, with Pringles valued at around US$1.5bn and Diamond having a market capitalisation of only US$900mn, P&G was apparently concerned that

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