Twist on Wall Street. Colossus last night Kraft–Heinz (+7%), of which Warren Buffett is one of the main shareholders together with the Brazilian allies of Level 3 (led by the former tennis ace Jorge Paulo Lemann), withdrew the surprise offer of 143 billion dollars just made on Unilever (+12%), which today starts in sharp decline on the Amsterdam Stock Exchange (-7,3%).
“Our proposal – reads a press release – was intended to have a friendly character” but the outcry of the Anglo-Dutch group convinced the Omaha wise man to avoid a raise-based fight that is not Buffett's style.
The withdrawal comes after 48 hours of drama, which confronted two different cultures, aggressive cost cutting on the one hand and responsible capitalism on the other. And created tensions, including political ones, on both sides of the Atlantic. The British Prime Minister, Theresa May, had in fact asked her staff to review the agreement to see if it could put the British economy at risk and if it deserved government intervention.
Now Kraft could set course for other targets: Kellogg and Mondelez the most suspected. Ferrero is saved because it is too small for Buffett's needs. This is how anticipation grows for Buffett's letter to Berkshire Hathaway shareholders which will be published next Saturday.
