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Procter & Gamble's Problem With Pringles
- Breaking Views, Friday, December 16, 2011 11 AM
Procter & Gamble didn’t crunch the details on its Pringles partner adequately. Troubles escalated for Diamond Foods, the agreed buyer of the chips brand, on Thursday as the Securities and Exchange Commission initiated a probe into its accounting on the heels of the snack food company’s own internal inquiry.
The consumer giant may have missed some warning signs. In April, when the $2.4 billion transaction was announced, Diamond shares soared, but September brought questions about the accounting treatment of payments to growers, and the company’s finances and disclosures. Investors bet against Diamond shares. In November, the deal was put on hold.
