Kraft Buyout of UK Chocolate Angers Krafts Largest Shareholder

This article on the BBC talks about Kraft Foods buyout of a UK chocolate-maker company and how it angered Kraft's largest shareholder, Warren Buffet. Buffet owns 9.4% stake in Kraft. He says that this takeover is a bad deal and makes him feel "poorer". Kraft's chief executive, Irene Rosenfeld, believes that the takeover of Cadbury, the chocolate-makers, is a good deal. She told the BBC that "It transforms our portfolio for better long-term growth."

This article is the basic example that corporations and companies have the final say in agreements and takeovers, not the shareholders, no matter how much stock a shareholder holds. It is understood that a corporation will generally do something to benefit and please the stockholders. In this case, Kraft didn't listen to it's largest stockholder because he is just one person with different views, and Kraft thinks it's take over of Cadbury in the long run will be a very beneficial takeover. Only time will tell us if Warren Buffet was right after all or if Kraft made the right decision.