{"id":220462,"date":"2010-01-23T18:44:00","date_gmt":"2010-01-23T23:44:00","guid":{"rendered":"tag:blogger.com,1999:blog-3087194156628161158.post-1016174374346377444"},"modified":"2010-01-23T18:48:10","modified_gmt":"2010-01-23T23:48:10","slug":"cnbc-buffett-critical-of-kraft-but-wont-sell-stake","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/220462","title":{"rendered":"CNBC: Buffett critical of Kraft but won&#8217;t sell stake"},"content":{"rendered":"<p><!-- AddThis Button BEGIN --><span>By: <\/span>The Associated Press  |  23 Jan 2010  |  04:57 PM  ET  <script language=\"javascript\">   function UpdateTimeStamp(pdt) {    var n = document.getElementById(\"udtD\");    if(pdt != '' && n && window.DateTime) {     var dt = new DateTime();     pdt = dt.T2D(pdt);     if(dt.GetTZ(pdt)) {n.innerHTML = dt.D2S(pdt,((''.toLowerCase()=='false')?false:true));}    }   }   UpdateTimeStamp('633998806310000000');<\/script><\/p>\n<div class=\"fL w635 lower_hd_section\" style=\"\" archive=\"urn:schemas-microsoft-com:workbench:xslt:archive\">\n<div class=\"fR tool_textsize padR\"><span class=\"cnbc_sbhd_comp fL padR\"><\/span><\/div>\n<\/div>\n<p><script type=\"text\/javascript\">setDefault('cnbc_textbody');<\/script><\/p>\n<p class=\"textBodyBlack\"><span id=\"byLine\"><\/span>OMAHA, Neb. &#8211; Warren Buffett said Wednesday <a href=\"http:\/\/everythingwarrenbuffett.blogspot.com\/2010\/01\/cnbc-warren-buffett-i-would-have-voted.html\">he doesn&#8217;t approve of Kraft&#8217;s $19.5 billion acquisition of Cadbury<\/a>, but he doesn&#8217;t plan to sell his stake in the company.<\/p>\n<p class=\"textBodyBlack\"><span id=\"byLine\"><\/span>Buffett&#8217;s Berkshire Hathaway Inc. is Kraft&#8217;s largest stockholder and he has been vocal about his belief that Kraft overpaid for the European chocolate and gum maker. Kraft sold its pizza business for about $3.7 billion to help fund the deal.<\/p>\n<p class=\"textBodyBlack\"><span id=\"byLine\"><\/span>Buffett said Wednesday that Kraft paid too much for Cadbury and used an extremely undervalued stock to do so.<\/p>\n<p class=\"textBodyBlack\"><span id=\"byLine\"><\/span>&#8220;I think this deal is a mistake, and I think selling the pizza business was a mistake,&#8221; Buffett said.<\/p>\n<p class=\"textBodyBlack\"><span id=\"byLine\"><\/span>But Buffett told The Associated Press in an interview before Berkshire&#8217;s special shareholder meeting that he plans to keep the 138 million Kraft shares his company holds.<\/p>\n<p class=\"textBodyBlack\"><span id=\"byLine\"><\/span>Berkshire shareholders voted Wednesday to split the company&#8217;s Class B shares 50-for-1 in a move tied to Berkshire&#8217;s $26.3 billion acquisition of Burlington Northern Santa Fe Corp. Buffett acknowledged that both Berkshire and Kraft are using what he considers undervalued stock to complete acquisitions, but he said only Berkshire&#8217;s deal is priced right.<\/p>\n<p class=\"textBodyBlack\"><span id=\"byLine\"><\/span>&#8220;In the case of Kraft, they&#8217;re paying an extremely full price and using an extremely undervalued stock,&#8221; Buffett said.<\/p>\n<p class=\"textBodyBlack\"><span id=\"byLine\"><\/span>Kraft and Cadbury announced agreement on their sweetened deal on Tuesday. Kraft eliminated the need for a shareholder vote on the deal by reducing the share portion of the deal below 20 percent, so Berkshire won&#8217;t get a vote on it.<\/p>\n<p class=\"textBodyBlack\"><span id=\"byLine\"><\/span>For each share of Cadbury, stockholders are to receive 500 pence cash and 0.1874 new Kraft shares \u2014 which closed down 17 cents at $29.41 Tuesday. The bid values Cadbury 50 percent higher than its market value before Kraft first said it wanted to buy the company in September.<\/p>\n<p class=\"textBodyBlack\"><span id=\"byLine\"><\/span>Kraft shares slid Wednesday as Buffett voiced his dissent, trading down 2.4 percent at $28.70. At the lower share price, the Cadbury deal would be valued closer to $19.4 billion.<\/p>\n<p class=\"textBodyBlack\"><span id=\"byLine\"><\/span>___<\/p>\n<p class=\"textBodyBlack\"><span id=\"byLine\"><\/span>On the Net:<\/p>\n<p class=\"textBodyBlack\"><span id=\"byLine\"><\/span>Berkshire Hathaway Inc.: www.berkshirehathaway.com<\/p>\n<p><span style=\"font-size: 100%;\"><a name=\"comments\"><span style=\"font-weight: bold;\">Share Investor Links<\/span><\/a><\/span><a name=\"comments\"><\/a><span id=\"articleText\"><\/span><\/p>\n<p><a href=\"http:\/\/www.shareinvestorblog.com\/\">Share Investor Blog<\/a> &#8211; Stockmarket &amp; Business commentary<br \/><a href=\"http:\/\/shareinvestornz.blogspot.com\/2007\/02\/new-zealand-business-news.html\">Share Investor New Zealand Business News<\/a>&#8211; Get more business news<br \/>Discuss this topic @<a href=\"http:\/\/www.shareinvestorforum.com\/\"> Share Investor Forum<\/a> &#8211; <a 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Buffett&#8217;s Berkshire Hathaway Inc. is Kraft&#8217;s largest stockholder and he has been vocal about his [&hellip;]<\/p>\n","protected":false},"author":833,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-220462","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/220462","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/users\/833"}],"replies":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/comments?post=220462"}],"version-history":[{"count":0,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/220462\/revisions"}],"wp:attachment":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/media?parent=220462"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/categories?post=220462"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/tags?post=220462"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}