TORONTO (Bloomberg) - Kraft Foods Inc., the world's second-largest foodmaker, said it is not in talks to buy Brazil's biggest food company, Perdigao SA.

"We don't typically comment on market rumors, but since these reports come at the same time as the announcement that Kraft intends to access the debt capital markets, we can confirm that we are not in talks to buy Brazilian foodmaker Perdigao," Northfield, Illinois-based Kraft said yesterday in a statement.

The announcement comes after a Valor Economico newspaper report earlier yesterday that said Kraft was in talks to acquire Perdigao, without saying where it got the information.

Negotiations are in the initial stage with the pension funds that control Perdigao, Valor reported.

Perdigao plans to raise 830 million reais ($463 million) with the sale of new shares, the newspaper said.

Kraft rose 43 cents, 1.3 percent, to $34.83 in New York Stock Exchange composite trading.

The shares dropped by 2.4 percent this year.

Perdigao climbed two reais, or 4.6 percent, to $45.5 in Sao Paulo trading.