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 ...
Berkshire Hathaway Reduced Kraft Position During First Quarter
In a 13F Filing with the Securities and Exchange Commission this afternoon, Berkshire reported holding 106.7 million shares of Kraft as of March 31, 2010 compared to nearly 138.3 million shares on December 31, 2009. In addition to the sale ...
Insights on Executive Compensation from The Journal of Investing
Most companies on a calendar fiscal year have released proxy statements over the past month. In addition to annual reports, intelligent investors must pay close attention to proxy statements to determine the company’s philosophy on executive compensation. Nearly every compensation ...
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 Lacks Enthusiasm for Kraft’s Cadbury Bid
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 ...