Warren Buffet’s Berkshire Hathaway votes against Kraft’s Cadbury Acquisition
| January 10th, 2010 |
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Warren Buffet’s Berkshire Hathaway voted “No” last week on Kraft’s (NYSE: KFT) proposition to issue up to 370 million shares to facilitate the acquisition of UK confectioner Cadbury Plc (NYSE: CBY). Berkshire Hathaway is the single largest shareholder of KFT, owning 9.4% of the company’s outstanding shares.
In a press release, Berkshire Hathaway stated that the company believes the current share-issuance proposal is a “blank check” that would allow KFT to change its offer to Cadbury “…in any way it wishes. To state the matter simply, a shareholder voting ‘yes’ today is authorizing a huge transaction without knowing its cost or the means of payment.”
Berkshire Hathaway will wait until the January 19th proposal deadline in order to review any new or final takeover offers. If Berkshire Hathaway believes the revised takeover proposal to be a good value for KFT shareholders, the firm reports it would change its vote to “Yes.” |
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