SAN FRANCISCO -- Diamond Foods here has agreed to merge with the Pringles business currently owned by Procter & Gamble in a deal that would greatly increase the size of Diamond and continue P&G's shift away from the food industry. The transaction, which Diamond said is valued at about $2.35 billion, would involve Cincinnati-based P&G splitting off Pringles as a separate entity, and giving shareholders an option to exchange P&G shares for shares of Diamond. The existing ...

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