--First listings switch by a DJIA constituent
--Costs and Times Square marketing position helped drive
move
--Kraft will list both companies on Nasdaq after split
(Rewrites and updates throughout with comments from Kraft,
NYSE.)
By Jacob Bunge, Paul Ziobro and Kristin Jones
NEW YORK--Kraft Foods Inc. (KFT) announced plans Friday to
switch its stock-market listing to Nasdaq OMX Group Inc. (NDAQ)
from the New York Stock Exchange, lured by the prospect of cost
savings and the marketing visibility afforded by Nasdaq's landmark
advertising billboard in New York's Times Square.
The move by the world's second-largest food group by revenue
marks a huge coup for Nasdaq as it battles to contain the
reputational fallout from its botched handling of last month's
initial public offering by Facebook Inc. (FB).
Kraft, with a market value of almost $68 billion, has been
listed on the Big Board since 2001, and it is the first time that a
member of the benchmark Dow Jones Industrial Average index has
switched.
Nasdaq and NYSE are engaged in a fierce battle to win new
listings and poach each other's business. To secure the listing,
Nasdaq OMX pushed the promotional abilities the exchange is able to
offer, including the visibility from being displayed on its iconic
Marketsite building in Manhattan.
"The Times Square real estate is one of those marketing
opportunities," said Michael Mitchell, a Kraft spokesman.
Mr. Mitchell said that Kraft was in no way dissuaded by Nasdaq's
recent handling of Facebook.
"Facebook was a different situation in terms of that process,"
he said. "We're very confident that the listing will be handled and
executed well."
Mr. Mitchell said Kraft had no problems with being listed on the
NYSE, where it has resided since its 2001 split from Philip Morris,
now known as Altria Group Inc. (MO). However, Kraft's own planned
split led to a re-evaluation of its listing and marketing
strategy.
Kraft is splitting into a global snacks company called Mondelez
International Inc. that will trade under the symbol MDLZ, and a
legacy North American grocery products business to be known as
Kraft Foods Group Inc., trading under KRFT.
The company will start trading under its legacy KFT ticker on
Nasdaq from June 26.
"It's been a privilege to serve the company and its
shareholders," a spokesman for NYSE Euronext (NYX) said in a
statement.
Kraft shares were recently up 0.3% at $38.28.
Write to Jacob Bunge at Jacob.Bunge@dowjones.com, Paul Ziobro at
Paul.Ziobro@dowjones.com and Kristin Jones at
kristin.jones@dowjones.com