Buffett hits out over Kraft takeover deal

Kraft's biggest shareholder, US billionaire Warren Buffett, has launched a fresh attack on the food giant's hostile takeover of Dairy Milk maker Cadbury.

Mr Buffett, whose Berkshire Hathaway investment vehicle owns almost 10 per cent of Kraft, said he "feels poor" in the wake of this week's takeover agreement. Kraft has not had to seek shareholder approval for the £11.9 billion deal, but Mr Buffett told US television station CNBC he would not have supported the move.

"If I had the chance to vote on this, I'd vote no," he said, adding that he had "a lot of doubts" about the takeover of Cadbury, which has its historic home in Bournville, Birmingham, and employs 2,500 in the West Midlands.

The decision by Kraft to sell its US pizza business to Nestle to help fund the deal was also a target for his criticism, as he said the price was too low.

He had already expressed his concerns about the Cadbury takeover, warning Kraft not to overpay for the UK business.

But Mr Buffett rejected suggestions that he could sell his stake in the firm in protest, saying that Kraft stock was still undervalued.

Nevertheless, he described Kraft chairman and chief executive Irene Rosenfeld as a "good operator" and said relations with her were cordial despite their "difference of opinion".

Ms Rosenfeld said the offer "represents a compelling opportunity" both for Cadbury and Kraft shareholders, with the combined group boasting more than 40 major confectionery brands and becoming the world's number one chocolate and sweets firm – and the second biggest in chewing gum with the addition of Cadbury's Trident brand.

Kraft, the world's second biggest food company, already has a raft of well-known brands including Toblerone, Dairylea and Maxwell House coffee.

Mr Buffett's comments are unlikely to derail the Kraft bid, which needs the support of half of Cadbury's shareholders to succeed.