Diamond Foods (DMND) Ramps Higher as Kellogg (K) Takeover Rumors Catch Fire

Diamond Foods, Inc. (Nasdaq: DMND) is on the move mid-day Thursday as rumors that Kellogg (NYSE: K) could now buy the company gain steam.

DA Davidson's Tim Ramey recently discussed this idea in a note to clients, as reported by StreetInsider.com Wednesday.

"While we see the benefit in the Pringles deal [for Kellogg], we see more potential for growth in [the healthy snack segment] through Kettle and Emerald," Ramey said. The analyst called Emerald and Kettle "young, strong brands with high consumer awareness and high growth potential."

Adding to the speculation was comments from Kellogg CEO John Bryant to Reuters. "They're clearly a fit in the portfolio," he said. "You could say our ability to do bolt-on acquisitions has probably expanded with the addition of this business."

Shares of Diamond Foods are up 4.6 percent to $24.55.

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• DA Davidson Starts Everus (ECG) at Buy
• Sky Harbour adds $10M via share sale to M-Cor Capital
• DA Davidson Reiterates Buy Rating on Progress Software (PRGS) on Domo Asset Purchase