Kraft CEO Confident Warren Buffett Will Be Sending Congratulations on Cadbury


Kraft Foods CEO Irene Rosenfeld doesn't appear to be concerned after Warren Buffett's Berkshire Hathaway slashed its stake in the food giant by almost 23 center during the first quarter of the year.

Buffett has been very critical of Kraft's pursuit and acquisition of Cadbury, but no one at Berkshire has said if the sales are related to Buffett's opposition to the January deal. (Berkshire sold shares of several companies during the first three months of the year, presumably to help pay for its $26 billion acquisition of Burlington Northern Santa Fe.)

Referring to Buffett's line about waiting five years before sending either a congratulatory or condolence greeting card to a company making an acquisition, Rosenfeld tells Reuters:

"What I have said to him is that I am quite confident he will be sending me a congratulatory card and it will be in far less than five years."

Rosenfeld says the integration of the two companies is going extremely well. "I will say that for Mr. Buffett as well as for all our shareholders, in the coming months we will continue to deliver against the targets we have laid for ourselves. These results will speak for themselves."

She adds that Kraft is "well on the way" to delivering on its goal of at least $675 million in annual cost savings from the deal by the end of its third year.

Even after selling 31.5 million Kraft shares between December 31 and March 31, Berkshire remains the company's biggest shareholder with a stake of just over 6 percent.

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