Procter & Gamble Co. has reportedly settled on soliciting termination of its business of Pringles snacks to Diamond Foods Inc. The reports have been confirmed by three people who were familiar with the entire negotiations in progress.

It is assumable by the accounting investigation that resulted in playing a major role in expelling the Chief Executive Officer of Diamond.

Earlier in April 2011, P&G expressed its consent on selling off Pringles to Diamond in a deal that was reportedly pegged at a massive $1.5bn, but now it must now focus on determining the manner in which it will make an escape from the agreement.

Another factor in equation here is whether or not Diamond will be opposing disintegrate, as claimed by one of the informers, though he declined identification of his identity since it is being claimed that the matter is vastly private and sensitive. In case the sale was to go on, the shareholders of P&G will be easily getting their hands on a large number of stocks of Diamond.

In the entire situation of uncertainty, Diamond is paying a fair bit of price as its stock crashed down a massive 37% at the close of yesterday trade.

While expressing his opinion regarding the critical situation and what all prospects are still in sight for them to regain their long-lost momentum in the market, a Spokesperson for the Cincinnati-based P&G, Paul Fox, said, “Our position has not changed from last night. We are disappointed by Diamond’s news and we need time to evaluate. In the meantime, we will keep all our options open”.

Earlier on February 8, Diamond, best known for selling Emerald snack nuts, claimed that it was subjecting its chief financial officer as well as the CEO Michael J. Mendes on leave, with the decision being inspired by the disclosure that the payments made to walnut croppers were booked during the wrong time interval.