Kraft

(KFT)

is working on an arrangement to sell its Post cereals unit to

Ralcorp Holdings

(RAH)

for around $2.8 billion, according to a published report.

The Wall Street Journal

, citing a person who is aware of the situation, said a deal could be announced in the next few weeks. Post cereal names include Honey-Comb, Raisin Bran and Grape-Nuts.

Kraft was down 2 cents at $32.80 in premarket trading Monday.