Buffett warns Kraft over Cadbury pursuit

Buffett's Berkshire Hathaway, is the largest shareholder of Kraft at 9.4%, says it will vote against the US group's proposal to issue 370m shares to pay for the deal. The statement follows Kraft's $3.7bn sale of its North American pizza business to Nestlé, a move to add more cash to the Cadbury deal. "Kraft stock, at its current price of $27, is a very expensive ‘currency' to be used in an acquisition. In 2007, in fact, Kraft spent $3.6bn to repurchase shares at about $33 per share, presumably because the directors and management thought the shares to be worth more," Berkshire says. ...