Warren Buffett Slams Kraft's Cadbury Deal
"If I had a chance to vote on this, I'd vote no," he said
SAN FRANCISCO - DECEMBER 11: Billionaire investor Warren Buffett talks as Democratic presidential hopeful Hillary Clinton listens onstage at a fund-raising event December 11, 2007 in San Francisco, California. The junior U.S. senator from New York was joined by Buffet, who has not endorsed Clinton and has also hosted a fundraiser for Clinton's chief rival for the Democratic nomination, Sen. Barack Obama of Illinois. Buffet has called both candidates "presidential." (Photo by Justin Sullivan/Getty Images)
Wednesday, Jan 20, 2010 Updated at 12:16 PM CDT
It’s safe to say, Warren Buffett knows business.
So when he says he doesn’t like a deal, most people take heed.
But that hasn’t stopped Kraft Foods from sealing a $19.6 billion deal to buy Cadbury, Crain’s Chicago Business reports.
“I think it's a bad deal,” the Oracle of Omaha said. Buffett’s Berkshire Hathaway owns a 9.4 percent stake in Kraft foods. "I feel poorer," he told Crain’s.
In criticizing the deal, Buffett said he was unsure how the Deerfield based food conglomerate planned to pay the tab. But he stopped short of saying that he would dump his shares.
"If I had a chance to vote on this, I'd vote no," Buffett said. "I think Kraft is still undervalued. I just don't think it is as undervalued as it was three weeks ago."
Kraft defended the deal.
"We respect his opinion," spokeswoman Perry Yeatman told Crain’s. "He's one of our largest investors. We think this is a good deal for us. It transforms our portfolio for better long-term growth."