Kraft Makes Friends With Cadbury, Buffett Loses

Investing

Published: January 18, 2010 5:30 pm

Last Updated: January 18, 2010 10:09 pm

The rumor mill is at work. Kraft (NYSE:KFT) may have entered friendly talks with Cadbury (NYE:CBY) to end the ongoing battle caused by the American company’s hostile takeover offer for the UK firm.

The news, if true, would be good for Cadbury’s shareholders because the premium to close the deal should be well above the current offer and should include more cash.

Bad news for Warren Buffett, who owns a piece of Kraft, but thinks the Cadbury offer is too rich. Hershey (NYSE:HSY), which spent a lot of money on investment banking fees is left holding bag. It just got into the action too late to count.

The projected price tag to close the Cadbury deal–the media says $19 billion.

Douglas A. McIntyre

Take Charge of Your Retirement In Just A Few Minutes (Sponsor)

Retirement planning doesn’t have to feel overwhelming. The key is finding expert guidance—and SmartAsset’s simple quiz makes it easier than ever for you to connect with a vetted financial advisor.

Here’s how it works:

Answer a Few Simple Questions. Tell us a bit about your goals and preferences—it only takes a few minutes!
Get Matched with Vetted Advisors Our smart tool matches you with up to three pre-screened, vetted advisors who serve your area and are held to a fiduciary standard to act in your best interests. Click here to begin
Choose Your Fit Review their profiles, schedule an introductory call (or meet in person), and select the advisor who feel is right for you.

Why wait? Start building the retirement you’ve always dreamed of. Click here to get started today!