Diamond Foods Inc., one of the world's largest snack companies, placed its CEO and chief financial officer on administrative leave after the board of directors concluded that the San Francisco
company improperly accounted for millions of dollars in payments to walnut growers. The news, released after the stock market closed
Wednesday, sent Diamond stock plummeting more than 42% in after-hours trading.
Diamond was in line to close a $2.35 billion deal to buy Pringles from Procter & Gamble at the end of last
year, an acquisition that would have made it the second-largest global snack purveyor. The sale came to a grinding halt, however, when the Securities and Exchange Commission began investigating
concerns raised by Northern California walnut growers. P&G has said that other potential buyers of its potato crisp line have voiced interest.
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