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DealZone

Behind the deals and deal-makers

09:22 February 15th, 2008

Daily Briefing: Krafty Buffett

Posted by: Adam Pasick
Tags: DealZone

Berkshire Hathaway said it holds 8.6 percent stake in Kraft Foods worth about $4.3 billion, making it the company’s largest shareholder. Analysts said the investment fits in well with Warren Buffett’s (pictured left) ethos: Kraft has strong brands with good cash flow and is available at a relative discount. Shares of the food company surged in after-hours trading; regulators sometimes let Berkshire delay disclosures so investors cannot try to copy Buffett before he is finished buying.

NYSE Euronext has agreed to buy a 5 percent stake in Indian commodity bourse MCX for $55 million, in an attempt to get a slice of the country’s commodities boom. The Indian government allows foreign companies, funds and exchanges to acquire up to 49 percent of a commodity bourse, but single holdings are capped at 5 percent. NYSE also bought a 5 percent stake in the National Stock Exchange, India’s biggest stocks bourse, for $115 million last year.

Indonesian state miner Antam said it may buy up to 18.7 percent of Freeport McMoRan Copper & Gold Inc’s Indonesian unit in a deal expected to be worth about $3 billion. Antam, which is seeking to buy gold producing assets, said it had received “verbal support” from Indonesia’s state enterprises ministry to acquire the stake in PT Freeport Indonesia, the unit of the U.S. mining giant which owns and operates the huge Grasberg gold and copper mine in the province of Papua.

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