Berkshire voted no on Kraft share issue for Cadbury

[ourkid8]

http://finance.yahoo.com/news/Berkshire-voted-no-on-Kraft-rb-3283294918.html?x=0&.v=1

 

 

"Berkshire said it does not believe any Kraft shareholder should vote "yes" to the proposal without knowing what they are voting for. However, it said that it would change its own vote from "no" to "yes" if, after seeing the final offer Kraft is expected to present later this month, it concludes that the offer does not destroy value for Kraft shareholders."

 

Thanks,

 

S

[scimonoce]

Here's the press release (in PDF):

 

http://www.berkshirehathaway.com/news/JAN0510.pdf

[Parsad]

He's dead on, and you would think the Kraft board would take heed.  Cheers!

[value-is-what-you-get]

It really speaks to the entrenchment of "yes" Directors on Boards that are supposed to be protecting shareholder value when they stubbornly move ahead on a plan in the face of overwhelming evidence that it is a bad idea. (I consider WEB saying so to be overwhelming evidence) They probably do not want to admit they were wrong to offer underpriced shares for the purchase and so they trudge on.

 

The kicker is that the advice comes from Earth's foremost expert on the subject and it is free!!!

[Parsad]

For those that have read "The Snowball", Buffett's experience as a director at Coke was most unpleasant.  Fortunately, this time he's not a director and can freely say what's on his mind.  Cheers!