Mr Buffett said Kraft had made a mistake pursuing UK chocolate producer Cadbury - famous for its flakes (and its flake ads.).
Speaking to Becky Quick on CNBC Warren Buffett said he "has a lot of doubts" about the takeover. Kraft will be paying 500 pence in cash plus 0.1874 of new Kraft shares for a Cadbury share.
Mr Buffett also thinks Kraft's decision to sell its pizza business to Nestle in order to raise cash for the Cadbury bid, was a mistake. He said it was "enormously tax-inefficient" and cut the actual value of the deal from $US3.7 billion ($4 billion) to $US2.5 billion. The impression he gave was that he was not too impressed with the intelligence or business sense of the Kraft board.
As Warren Buffett has 9.4% of Kraft shares under his control his remarks cost him quite a lot of money as the Kraft shares fell immediately after he gave his opinion and have fallen around 3% since his remarks. Could it be that this is what he wants ? If he is considering buying more Kraft shares, then a lower price makes sense. But maybe this is not the way his mind works.
Warren Buffett is known for his witty one-liners - see Warren Buffett Quotes