WHEN: Today, Thursday, August 4th
WHERE: CNBC's "Squawk Box"
Following is the unofficial transcript of breaking news from CNBC's Kayla Tausche. All references must be sourced to CNBC.
TAUSCHE: KRAFT IS OBVIOUSLY THE DEAL OF THE DAY. A REALLY TRANSFORMATIONAL ONE FOR THE COMPANY. AND ONE THAT WE ARE INTERESTED IN TAKING THE TEMPERATURE OF SEVERAL NOTABLE AND VOCAL SHAREHOLDERS INSIDE KRAFT. ONE OF COURSE BEING WARREN BUFFETT, ANOTHER BEING NELSON PELTZ. NOW, PELTZ IN A JUNE 27TH 13-F FILING WITH THE SEC, HIS TRIAN FUND REVEALED AN ACCUMULATION OF ALMOST 400 MILLION DOLLARS IN KRAFT SHARES. NOW TRIAN'S NEXT 13-F IS DUE ON AUGUST 13TH AND WE EXPECT IT TO SHOW SUBSTANTIAL INCREASE IN OWNERSHIP OF KRAFT COMMON SHARES AND IT CAN ALSO INCLUDE AN INCREASE IN SWAPS. NOW, PELTZ IS A VETERAN FOOD INVESTOR. THIS WE KNOW. HE'S OWNED WENDY'S AND ARBY'S, BUT HE IS PERHAPS BEST KNOWN FOR BUYING SNAPPLE TURNING A PRETTY PENNY AFTER SELLING IT TO CADBURY AND HE WAS THEN INSTRUMENTAL IN KRAFT'S BUYING OF CADBURY A YEAR AND A HALF AGO. HE WAS A SHAREHOLDER IN BOTH COMPANIES AND NOW HE'S REMAINED HEAVILY COMMITTED IN THE PUBLIC EYE TO THE SUCCESS OF KRAFT CEO IRENE ROSENFELD. SO WE ASKED PELTZ IF HE HAD A HAND IN THE DECISION HERE. HE DIDN'T ANSWER THE QUESTION DIRECTLY ONLY SAYING THAT HE IS "VERY SUPPORTIVE OF MANAGEMENT AND BOARD FOR COMING TO THIS DECISION. THEY MADE TWO GREAT DECISIONS, ONE REQUIRED THE OTHER. THE DECISION TO BUY CADBURY SET THE TABLE FOR THEM TO COME TO THIS CONCLUSION TODAY. IT'S IN THE BEST INTEREST OF SHAREHOLDERS TO CREATE A UNIQUE CONSUMER PRODUCTS BUSINESS WITH VERY HIGH GROWTH PROSPECTS, HUGE EMERGING MARKET EXPOSURE AND ONE THAT SEPARATES ITSELF FROM THE SLOW GROWTH COMMODITY RELATED MEAT AND CHEESE BUSINESS. INVESTORS NOW HAVE A CHOICE BETWEEN INVESTING IN THIS BUSINESS, WHICH WILL BE A LOW DIVIDEND PLAYER AND THE NORTH AMERICAN FOOD BUSINESS THAT WILL PROBABLY BE A HIGH DIVIDEND PLAYER. INVESTORS CAN TAKE ADVANTAGE OF BOTH COMPANIES."
GUYS THE INTERESTING THING ABOUT WHAT WILL HAPPEN TO THE NORTH AMERICAN FOOD BUSINESS IS THAT THIS WILL BE A VERY VERY HIGH DIVIDEND PAYING COMPANY ACCORDING TO PELTZ. AND THAT THE ONLY COMPARABLE OUT THERE IS PRIVATELY HELD AND THATS MARS. SO INVESTORS WILL HAVE A PRETTY UNIQUE OPPORTUNITY TO BUY INTO THAT COMPANY SHOULD THEY CHOOSE TO DO SO.
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