New York Post: Kellogg In Late-stage Talks To Buy Snack-maker Diamond Foods

(RTTNews) - Cereal maker Kellogg Co. (K) is in late-stage talks to acquire snack foods company Diamond Foods Inc. (DMND) for more than $1.5 billion, the New York Post reported Friday, citing sources.

According to the New York Post report, Kellogg's offer price for Diamond Foods could be in a range of $35 to $40 per share. An acquisition of Diamond Foods would enable Kellog to further transition towards snack foods.

San Francisco, California-based Diamond Foods, whose stable of brands includes Kettle potato chips, Emerald nuts and Pop Secret popcorn, has reportedly put itself up sale earlier this year.

Battle Creek, Michigan-based Kellogg, whose cereal lineup includes Frosted Flakes, Froot Loops and Rice Krispies, has been trying to expand its snacks foods business while breakfast cereal sales decline in the U.S.

Breakfast foods now represent only a little more than 20 percent of Kellogg's net sales in the U.S, with snacks being a slightly larger category.

K is trading at $71.67, down $0.34 or 0.47 percent on a volume of 713,359 shares.

DMND is trading at $34.34, up $1.51 or 4.6 percent on a volume of 419,479 shares.