Peltz's Trian Fund Sold $132 Million Kraft Foods Stake in Second Quarter

Billionaire Nelson Peltz disclosed that his hedge-fund group sold a $132 million stake in Kraft Foods Inc. that it bought earlier this year.

Trian Fund Management LP’s investment funds held no Kraft shares as of June 30, compared with 4.47 million shares on March 31, according to filings with the U.S. Securities and Exchange Commission on Friday. The New York-based hedge-fund group had owned as many as 34.6 million Kraft shares at the end of 2008.

Kraft, the second-largest food maker after Nestle SA, announced in November 2007 that it would add two board members backed by Peltz after he agreed not to seek control of the Northfield, Illinois-based company. In February, Kraft acquired Uxbridge, England-based Cadbury Plc for about 13.6 billion pounds ($21.3 billion) in cash and stock, transforming the maker of Velveeta cheese into the world’s biggest confectioner.

Anne Tarbell, a spokeswoman for Peltz, declined to comment.

The New York Times and MarketWatch.com reported earlier that Trian had sold its Kraft holdings. Trian Partners General Partner LLC, Peltz’s largest fund, also disclosed that it bought 1.62 million shares of Boston-based State Street Corp. during the second quarter.

The SEC requires money managers who oversee more than $100 million in U.S. equities to report their holdings on a Form 13F within 45 days of the end of each quarter. The filing must include all holdings in stocks that trade on U.S. exchanges, as well as options and convertible debt.

Kraft rose 3 cents to $29.53 at 12:39 p.m. in New York Stock Exchange composite trading.

To contact the reporter on this story: Miles Weiss in Washington at mweiss@bloomberg.net

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