Kimberly-Clark To Spin Off Tobacco Units

Kimberly-Clark Corp., the maker of Kleenex tissues and Huggies diapers, announced Tuesday that it would spin off its $404 million tobacco-related businesses, in a move that analysts said was prompted by shareholders’ concern over the legal liabilities of cigarettes.

The spinoff company, which is as yet unnamed, would establish a fire wall between Kimberly-Clark’s nontobacco businesses and its American and French operations that make products used in cigarettes.

The announcement follows January’s decision by RJR Nabisco Holdings Corp. to spin off 19 percent of its food business from its tobacco operations.

Wall Street applauded the spinoff, sending shares of KimberlyClark up $1.875 Tuesday, to $59.125.