Kraft Adds Cadbury Cash; Buffett Opposes Share Issue

Kraft Foods Inc. raised the cash component of its 10.6 billion-pound ($17 billion) offer for Cadbury Plc as investor Warren Buffett objected to a plan to issue millions of Kraft shares to finance the deal.

Kraft said today that it would sell pizza brands including DiGiorno and Tombstone to Nestle SA and use all the net proceeds from the $3.7 billion deal to add cash to its bid for the Uxbridge, U.K.-based maker of Dairy Milk chocolate, after requests from some shareholders.

Buffett’s Berkshire Hathaway Inc., the top stockholder in Kraft, voted against the foodmaker’s proposal to issue as many as 370 million shares for the Cadbury purchase. Berkshire said it would endorse a transaction that didn’t “destroy value for Kraft shareholders.” Kraft takes Buffett’s opinion seriously, according to Perry Yeatman, a company spokeswoman.

Read Full Article from Bloomberg

- Posted: 2010-01-05 10:50:25

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