Kraft Makes Friends With Cadbury, Buffett Loses
The rumor mill is at work. Kraft (NYSE:KFT) may have entered friendly talks with Cadbury (NYE:CBY) to end the ongoing battle caused by the American company’s hostile takeover offer for the UK firm.
The news, if true, would be good for Cadbury’s shareholders because the premium to close the deal should be well above the current offer and should include more cash.
Bad news for Warren Buffett, who owns a piece of Kraft, but thinks the Cadbury offer is too rich. Hershey (NYSE:HSY), which spent a lot of money on investment banking fees is left holding bag. It just got into the action too late to count.
The projected price tag to close the Cadbury deal–the media says $19 billion.
Douglas A. McIntyre