LONDON (AP) -- Shares in chocolate, candy and gum maker Cadbury PLC edged higher in early trading Thursday despite the warning by U.S. billionaire Warren Buffett that Kraft Foods Inc. -- in which he is the biggest shareholder -- was offering a suitable price for the British company.
Cadbury shares traded at 788 pence, up 0.2 percent, on the London Stock Exchange. Cadbury shares had shot up from 568 pence after Kraft announced on Sept. 7 that it was offering 745 pence a share for Cadbury, valuing the company at 10.2 billion pounds ($16.7 billion).
However, Kraft's share price has slid since then, decreasing the value of its cash and shares offer.
Buffett, whose Berkshire Hathaway is the biggest shareholder in Kraft, said Wednesday the U.S. company "has the disadvantage of using an undervalued stock."
"So if you -- if part of your currency is a stock that's worth more money than it's selling for and you're ... paying full negotiated value for the other guy's property and you wouldn't sell your own property for anything like the market price, ... it makes it a tough game," Buffett said in an interview with CNBC.
"So it's a full price," he added.
"I've got a lot of confidence in (Kraft CEO) Irene Rosenfeld," he said, but added: "They have to do a lot of things right to justify this price."
Copyright 2009 The Associated Press.