The drama associated with Kraft’s hostile takeover bid for Cadbury has been widely reported in recent weeks. With Kraft’s decision earlier this week to make a formal bid that did not sweeten the terms of the original offer, it appears that we are in for several months of high stakes wrangling before Cadbury shareholders make a final decision. Read this article for thoughts on what the deal implies for the value of Cadbury’s economic moat.
In the second part of the CNBC interview shown below, Warren Buffett comments on Kraft’s recent bid for Cadbury. While he expressed confidence in Kraft’s management, he was very clear in stating that Kraft already made a “full price” offer and is at a disadvantage since part of the deal involves using “undervalued” Kraft stock. Mr. Buffett also comments on a variety of other topics including the residential real estate market. The first part of the interview was posted with some comments on this site last night.