Buffet, who is a major shareholder in Kraft, had no voting rights in the acquisition under New York Stock Exchange rules which state that shareholders don’t get a say unless more than 20 per cent of stock is issued in a deal.
Nevertheless, the views of the so-called ‘Sage of Omaha’ who is the world’s second richest man, caused a panic among investors which led to Kraft shares falling 2.5 per cent by lunch time yesterday.
In his statement, Buffet said the deal made him “feel poor” and that while Irene Rosenfeld, Kraft’s chief executive, was described as a “perfectly decent person” the deal she fought five months to secure was a “bad” one, he said.
Buffett made the remarks in an interview with America’s CNBC news. He claimed that the Cadbury takeover could have been forced by “deal momentum” with help from over-eager investment bankers.
Buffet is known for his shrewd investment decisions and his ability to secure investments at cut-price rates. His objection in this instance was that Kraft had overpaid.
Related article:Warren Buffet: I’m just luckyWhere is cadburys chocolate made?
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.