Buffet slams ‘bad’ Cadbury deal

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 lucky Where is cadburys chocolate made?

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