Buffett butts in on Kraft's Cadbury bid

Kraft's four-month pursuit of Cadbury took an unexpected turn as Warren Buffett, the US food giant's biggest shareholder, waded into the battle with a rare public rebuke.

With the deadline for a final bid looming, US food giant Kraft's four-month pursuit of Cadbury took an unexpected turn this week. Kraft announced that it would increase the cash component of its cash and share £10.4bn bid.

Then Warren Buffett, Kraft's biggest shareholder, with a 9.4% stake, waded into the battle with a rare public rebuke for Kraft. His investment vehicle Berkshire Hathaway said it opposed Kraft's plan to issue up to 370 million new shares to fund the takeover. Berkshire thinks Kraft's stock is undervalued and worries that the share issuance plan amounts to a "blank cheque" to give part of the company away on the cheap.

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