Sao Paulo, Dec. 13 - Kraft Foods Inc. is in talks over a bid for M.Dias Branco, Brazil's largest pasta and biscuit producer, in a deal that could be worth $1 billion, according to a report in the local O Estado de S. Paulo newspaper Thursday.
The M.Dias Branco acquisition would be part of Kraft's international expansion plans, said the report.
When contacted by the newspaper, Kraft said it does not comment on market rumors while a M.Dias Branco spokesman said he was not aware of the negotiations.
Last week, Krafts was linked with a possible bid for Brazilian meatpacker and food processor Perdigao SA (PDA), although both parties later denied talks.