General Mills sees no need for major acquisition

General Mills Inc. Chief Financial Officer Donal Mulligan said he sees no need for a "transformational" acquisition similar to Kraft Foods Inc.'s proposed takeover of Cadbury Plc. General Mills has operations in West Chicago.

"Because of the strength of our portfolio and the operating momentum that we have, we don't see the need nor do we see the target, if you will, for a transformational-type acquisition," Mulligan said today in a telephone interview.

The maker of Cheerios and Green Giant frozen vegetables reported first-quarter profit today that topped analysts' estimates and boosted its full-year forecast as commodity costs fell. Minneapolis-based General Mills may consider smaller acquisitions to expand in some categories or places, Mulligan said.

General Mills rose $2.92, or 4.8 percent, to $63.89 at 12:29 p.m. in New York Stock Exchange composite trading after climbing as much as 6 percent, the biggest intraday gain since Oct. 28. The shares had added less than 1 percent this year before today.

Kraft, the Northfield-based maker of Oreo cookies, said Sept. 7 that it approached London-based Cadbury with a proposed takeover worth about $16 billion. Cadbury rebuffed the offer.

Kraft's proposal is not "the first wave of industry consolidation," Mulligan said. He declined to say whether General Mills is considering a competing bid for Cadbury.