Warren Buffett’s Analogy for Kraft’s Failed Unilever Takeover Is Cringeworthy
Earlier this month, Unilever (UL) rejected a $143 billion takeover offer from Kraft Heinz, which would have been one of the largest deals in corporate history. Then, rather than return with a higher offer, Kraft Heinz “amicably agreed to withdraw its proposal for a combination of the two companies.”
Now investor Warren Buffett, who backs Kraft Heinz (KHC), has spoken out about the surprising turn of events using a strange analogy to explain how the failed takeover attempt unfolded. During an interview on CNBC on Feb. 27, Buffett told host Becky Quick that the situation reminded him of “that old story about the difference between a diplomat and a lady.” He continued, according to a transcript from CNBC:
Well, if a diplomat says yes, he means maybe. If he says maybe, he means no. And if he says no, he’s no diplomat. And if a lady says no, she means maybe. And if she says maybe, she means yes. And if she says yes, she’s no lady. So [Kraft Heinz Chairman Alex Behring] probably got a maybe and didn’t know whether it was coming from a diplomat or a lady, essentially. I mean, that’s what frequently people get.