A recent report in the Chicago Tribune indicates that Altria Group, the parent company of Kraft Foods, is considering a split that would separate Kraft from the company's tobacco holdings.

Altria's Chief Executive Louis Camilleri said the group could be split into two or three companies as early as the middle of 2005. The group spun off 15% of Kraft two years ago, but it believes that Kraft's stock remains undervalued due to its connection to the former Philip Morris, and subsequent fears that it faces a liability from ongoing tobacco litigation.