Borden’s Dairy Business May Be Offered for Sale
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CLEVELAND — Borden Inc., continuing yet another restructuring, may be considering selling its $1.3-billion dairy business, but analysts were asking, “Who would buy it?”
Borden declined to comment Thursday on a Wall Street Journal report that it may sell or shut down its struggling dairy division under increasing pressure from creditors.
Borden’s dairy business--which includes milk, cheese and ice cream--posted a loss of $35 million for 1993, and analysts estimate it lost another $30 million in the first half of 1994, the Journal said.
Argus Research analyst Terry Bivens estimated that the dairy division lost $25 million during the first half and that, although it accounted for 20% of Borden’s $5.5 billion in sales last year, yielded only about 2.5% of operating profit.
Fahnestock & Co.’s Allan Roness said, however, that Borden might be able to break up its dairy operations and sell them to regional dairies.
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