Billionaire investor Warren Buffett, who is a leading shareholder in Kraft Foods, has warned the US foods firm against overpaying for the British confectionery firm Cadbury, a media report says.
According to The Times, Warren Buffett, the world's second-richest man and a leading shareholder in Kraft, has warned the American food group that it should not overpay for taking over Cadbury.
He said that Kraft, where he owns a 10 per cent stake, had already offered a "full price" for the British chocolate maker. Buffett has raised doubts over whether Kraft had enough shareholder support to raise its 9.7 billion pounds bid for Cadbury significantly.
"Any time you're in a takeover, the animal spirits run high and all of that, but Kraft has the disadvantage of using an undervalued stock," the report said quoting Buffett.
According to the publication, shares in Kraft have fallen since the food conglomerate went public with its part-share, part-cash offer for Cadbury last week.
Cadbury had immediately rejected Kraft's bid last week, saying that it was undervaluing the group.
Buffett and another American billionaire and activist shareholder Nelson Peltz, could play a key role in the takeover battle, The Times report added.
Peltz, who has yet to go public with his views, owns five per cent of Cadbury as well as a 0.6 per cent stake in Kraft, the report noted.
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