General Mills still hungry for Pillsbury
Ann Merrill
Star Tribune
Published Sep 25 2001
General Mills Inc. Chairman Steve Sanger said his company
still intends to acquire Pillsbury Co.
"It's taken us quite a bit longer than we anticipated," as the
FTC studied the potential impact of the divestiture of Pillsbury
brands, Sanger said at General Mills' annual meeting Monday
in Minneapolis.
In an interview after the meeting, Sanger was asked whether
the company's board discussed walking away from the deal to
acquire Minneapolis-based Pillsbury, which it announced 14
months ago. Sanger's one-word reply: "No."
The delays, although frustrating, have allowed the company to
fine-tune its plans for integrating the two companies, which is
expected to take about two years, Sanger said.
Golden Valley-based General Mills announced plans to buy
Pillsbury for $10.5 billion in July 2000. After months of delays
waiting for approval from the Federal Trade Commission, the
maker of Cheerios now expects the review to be completed next
month.
In February, Minnetonka-based International Multifoods
Corp. announced it would spend $305 million to acquire
Pillsbury dessert mixes, Hungry Jack potato mixes and General
Mills' U.S. Robin Hood flour business.
The Multifoods purchase would alleviate anti-trust issues for
General Mills, which competes with Pillsbury with its own Betty
Crocker brand.
Yet the plan hasn't been a slam-dunk: Multifoods in late July
announced that the FTC review likely will lead to favorable
modifications to the original purchase agreement. General
Mills is expected to license the Pillsbury brand, including the
Doughboy, to Multifoods for use in the dessert and baking mix
category.
At the annual meeting, a proposal calling for the company to
begin labeling products that contain genetically engineered
ingredients was defeated for the second year in a row.
Also again this year, members of the People for the Ethical
Treatment of Animals conducted modest picketing outside the
hall to protest the company's circus sponsorship.
Shareholder questions to Sanger were few. One suggested an
American strategy for Afghanistan should center on dropping
food, not bombs. Sanger said the company likely would help
provide humanitarian aid if called upon.
The General Mills board Monday approved a quarterly
dividend of 27½ cents per share, payable Nov. 1 to shareholder
of record on Oct. 10. The company's stock, which hit a 52-week
high of $46.40 last Tuesday, closed up $1.25 Monday at $44.65.
-- Ann Merrill is at amerrill@startribune.com .
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