It appears the chocolate wars are heating up once again, with Kraft making a bold new move in an attempt to win Cadbury .
Specifically, Kraft announced plans to sell its frozen pizza business for $3.7 billion to Nestle; that includes brands such as DiGiorno, Tombstone and California Pizza Kitchen.
The move was presumably made so Kraft can sweeten its offer for Cadbury.
Although the sale may have been intended as a sign of strength, one major shareholder was anything but impressed. Warren Buffet, Kraft's biggest shareholder, warned he may vote against the deal if he feels Kraft is overpaying.
What must you know about these developments?
I think Warren Buffett’s comments make the Kraft deal more likely, muses Karen Finerman. He’s sending a message that Kraft doesn’t have limitlessly deep pockets.
Whiitney Tilson of T2 agrees. During an earlier CNBC interview he said, Buffett is sending an important message not only Cadbury's board but Cadbury's shareholders. He's saying not a penny more. You've already been offered a fair price.
Remember Buffett is okay with the deal as its currently being offered, adds Tilson.
Now I think we see Kraft say this is our best and final offer. And at the end of the day I think Cadbury takes it.
______________________________________________________
Got something to to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment but not have it published on our website send those e-mails to fastmoney@cnbc.com.
Trader disclosure: On Jan 5th, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Adami Owns (AGU), (C), (GS), (INTC), (BTU), (MSFT), (NUE); Najarian Owns (BG) Call Spread; Najarian Owns (BP); Najarian Owns (CLF); Najarian Owns (MRVL); Najarian Owns (MS); Terranova Owns British Pound Futures; Terranova Is Short Crude Oil Futures; Terranova Owns (BAC); Terranova Is Short (CMA); Finerman's Firm Owns (CBY); Finerman's Firm Is Short (KFT); Najarian Owns (FCX); Seymour Owns (AAPL), (BAC), (BG), (F), (INTC), (MSFT), (MT), (TSL), (TTM), (VALE)
Add'ls Disclosures for For Joe Terranova
Terranova Works For (VRTS)
Terranova Is Chief Market Strategist Of Virtus Investment Partners, Ltd.
Virtus Investment Partners Owns More Than 1% Of (CLB)
Virtus Investment Partners Owns More Than 1% Of (DLR)
Virtus Investment Partners Owns More Than 1% Of (EXR)
Virtus Investment Partners Owns More Than 1% Of (IGE)
Virtus Investment Partners Owns More Than 1% Of (XLY)
Virtus Investment Partners Owns More Than 1% Of (DBV)
Virtus Investment Partners Owns More Than 1% Of (UA)
Virtus Investment Partners Owns More Than 1% Of (XLB)
Virtus Investment Partners Owns More Than 1% Of (XLI)
Virtus Investment Partners Owns More Than 1% Of (SKT)
For Gene Munster
Piper Jaffray Is A Marekt Maker In (AAPL), (GOOG), (EBAY), (YHOO), (AMZN)
For Craig Berger
FBR Capital Markets Is A Market Maker Or Liquidity Provider For (ONNN)
FBR Capital Markets Is A Market Maker Or Liquidity Provider For (INTC)
FBR Capital Markets Is A Market Maker Or Liquidity Provider For (BRCM)
FBR Capital Markets Is A Market Maker Or Liquidity Provider For (NVDA)
FBR Capital Markets Is A Market Maker Or Liquidity Provider For (MRVL)
FBR Capital Markets Is A Market Maker Or Liquidity Provider For (LLTC)
FBR Capital Markets Is A Market Maker Or Liquidity Provider For (MXIM)
FBR Capital Markets Is A Market Maker Or Liquidity Provider For (ATML)
FBR Capital Markets Is A Market Maker Or Liquidity Provider For (LSI)
FBR Capital Markets Is A Market Maker Or Liquidity Provider For (SLAB)
FBR Capital Markets Is A Market Maker Or Liquidity Provider For (MSCC)
FBR Capital Markets Is A Market Maker Or Liquidity Provider For (QCOM)
FBR Capital Markets Is A Market Maker Or Liquidity Provider For (ATHR)
CNBC.com with wires
