{"id":141128,"date":"2010-01-05T13:57:00","date_gmt":"2010-01-05T18:57:00","guid":{"rendered":"tag:blogger.com,1999:blog-3087194156628161158.post-6540031015255440081"},"modified":"2010-01-05T14:04:22","modified_gmt":"2010-01-05T19:04:22","slug":"market-watch-video-buffett-slams-the-brakes-on-kraft","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/141128","title":{"rendered":"MARKET WATCH VIDEO: Buffett slams the brakes on Kraft"},"content":{"rendered":"

By MarketWatch<\/p>\n

Jan. 5, 2010, 1:46 p.m. EST<\/p>\n

READ BUFFETT’S PRESS RELEASE ON KRAFT SHARE ISSUE<\/a> <\/p>\n

SAN FRANCISCO (MarketWatch) — Kraft Foods CEO Irene Rosenfeld got an earful Tuesday, when she was told that her costly pursuit of Cadbury Plc amounts to biting off more than her company can chew. <\/p>\n

This blunt criticism comes from none other than billionaire Warren Buffett, the usually reserved head of Berkshire Hathaway<\/span><\/span> which, with a 9.4% stake, is Kraft’s biggest shareholder. <\/p>\n

<\/object> <\/p>\n

Buffett warns Kraft<\/h3>\n

In an unusual move, Warren Buffett issues a public warning to Kraft, which is trying to take over Cadbury. The News Hub analyzes Buffett’s atypical action. <\/p>\n<\/p><\/div>\n

Buffett said “no” to Kraft’s request to issue new shares to finance its hostile bid for the London-based chocolate maker. It’s a rare public rebellion by Buffett, whose call for fiscal accountability counters Rosenfeld’s request for what Buffett labeled a “blank check” for the Cadbury pursuit. See Buffett’s “no” vote. <\/a><\/p>\n

The timing is perfect. Kraft has just raised its bid for Cadbury, which in turn wasted no time rejecting it, just as it has rejected every overture from Rosenfeld since this trans-Atlantic food fight started back in September. <\/p>\n

Sensing Buffett’s move could torpedo a deal, investors playing the takeover arbitrage sent Cadbury’s stock <\/span> <\/span> down 3.5%, while Kraft<\/span> <\/span> shares jumped 3.5%. It’s tempting to assume Kraft shares are rallying on relief that management might see the folly of pursuing Cadbury at the risk of watering down shareholder value still further. <\/p>\n

<\/span><\/span>But does it mean the deal’s dead? Hardly.