Tuesday, January 5, 2010

Berkshire votes 'no' on Kraft's Cadbury offer

Berkshire Hathaway Inc. (BRK.A 99,821, +221.00, +0.22%) , (BRK.B
3,317, +6.01, +0.18%) said Tuesday it has voted "no" on Kraft's (KFT
28.26, +0.83, +3.03%) proposal to authorize the issuance of up to 370
million shares to facilitate the acquisition of Cadbury PLC (CBY
49.81, -1.84, -3.56%) . Berkshire, the holding company controlled by
billionaire Warren Buffett, believes that the 138,272,500 Kraft shares
it owns make it the company's largest shareholder. "The share-issuance
proposal, if enacted, will give Kraft a blank check allowing it to
change its offer to Cadbury -- in any way it wishes -- from the
transaction presented to shareholders in the proxy statement,"
Berkshire said. "And we worry very much that, indeed, there will be an
additional change from the revision announced this morning."