Shares in Cadbury held their value today (17 September) despite a warning from US billionaire and Kraft Foods shareholder Warren Buffett that the US group had already offered a “full price” for the Dairy Milk maker.
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The UK confectioner’s shares rose in early trading this morning, and although the stock had dipped 0.06% to786p at time of writing, investors seemed to have paid scant attention from the reported remarks from Buffett.
The US investor, who owns around 10% of Kraft, issued concerns over whether the Milka and Cote d’Or confectioner could get enough shareholder support to raise its proposed GBP10.2bn (US$16.84bn) offer.
“Any time you’re in a takeover, the animal spirits run high and all of that, but Kraft has the disadvantage of using an undervalued stock,” Buffett said, according to a report in The Times.
Cadbury, which last week rejected Kraft’s proposal, insisting the offer “fundamentally undervalues” the company, refused to be drawn on Buffett’s remarks. “We’re not going to comment,” a spokesman told just-food.
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By GlobalDataKraft, the company behind brands like Philadelphia cheese and Oscar Mayer meats, also refused to comment.
Yesterday, Cadbury CEO Todd Stitzer defended his company’s record, insisting the group had “delivered on its promises” and laid out plans for further expansion.
Kraft has yet to comment publicly on whether it will table a second, higher offer. Speculation abounds over how the US food giant could fund another bid, although it has expressly ruled out the sale of other parts of its business to bank-roll another offer.
