HOORAY FOR WARREN BUFFET

Warren Buffet used his ownership of a major block of KRAFT stock to raise an objection to the acquisition of Cadburry. That is good but not surprising. What is surprising is that the directors of KRAFT failed to put the brakes on the transaction. Instead, it took a shareholder to fight.

This points out the potential failures in board rooms where those supposedly watching out for the shareholders interests are not doing so. KRAFT shareholders are lucky that Warren Buffet is one of them, in a big way. Otherwise there would have been no one fighting for them.

It is really time that those responsible for corporate governance, in companies througout the world undertook a detailed self examination to assure that mechanisms are in place to assure that directors are focused first on the best interests of the shareholders and then on the deal. Too often making the deal becomes the only objective with a great push from the M & A people who will earn substantial fees. There must be more room on boards of directors for independent thinkers, like Warren Buffet, who will make sure that the shareholders interests are served.

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