Pringles sale delayed for Diamond walnut probe

AP News
Posted: Nov 01, 2011 5:52 PM
Pringles sale delayed for Diamond walnut probe

Procter & Gamble Co. says the $1.5 billion sale of its Pringles division to Diamond Foods Inc. will be delayed until the end of June because of an internal investigation at Diamond into its accounting.

Procter & Gamble originally had expected the sale to close by the end of this year.

Diamond Foods said Tuesday its board of directors is investigating external communication regarding the company's accounting for crop payments to walnut growers. Procter & Gamble said the sale would occur after the investigation is completed.

The companies announced the deal in April. It would complete P&G's exit from all major food businesses.

Diamond Foods' shares fell $6.62, or 10.3 percent, to $57.50 in after-hours trading after the announcement. Procter & Gamble shares rose 18 cents to $62.89 after hours.