Rosenfeld Defends ‘Transformational’ Cadbury Acquisition
In an exclusive interview today on Bloomberg Television, Irene Rosenfeld, CEO of Kraft Foods, strongly defended the company's acquisition of Cadbury which closed earlier this year. Ms. Rosenfeld believes that investors who remain skeptical regarding the acquisition will eventually be ...
Kraft’s Executive Compensation Policies Reward Value Destruction
Kraft Foods Inc. released its annual proxy statement yesterday which serves as timely illustration of the faulty logic that compensation committees regularly use when setting executive compensation. As we discussed last month, compensation policies can encourage executives to pursue value ...
Motives Behind Value Destroying Mergers
In recent weeks, Kraft's proposed acquisition of Cadbury has generated a great deal of interest. When an investor with Warren Buffett's reputation characterizes the transaction as making him "feel poorer", observers might wonder what could possibly motivate a CEO such ...
Buffett “Feels Poorer” Based on Terms of Cadbury Deal
In a CNBC interview this morning prior to the special meeting of Berkshire Hathaway shareholders, Warren Buffett comments on a number of topics including the Obama Administration's proposed bank tax. Mr. Buffett does not believe that banks are making "obscene ...
Buffett Opposes Kraft’s Request for “Blank Check” in Cadbury Bid
In a press release issued by Berkshire Hathaway this morning, Kraft management is criticized for seeking a “blank check” which will allow the company to issue up to 370 million shares in order to facilitate an offer for Cadbury. The ...