Warren Buffett says he overpaid for Kraft Heinz: ‘I was wrong in a couple of ways’

Warren Buffett, chairman and CEO of Berkshire Hathaway, spoke with CNBC Monday after releasing his annual letter to shareholders on Saturday.AP Photo/Nati Harnik

Warren Buffett said on Monday that his Berkshire Hathaway Inc overpaid in the 2015 merger that created Kraft Heinz Co, but he had no plans to flee the struggling packaged foods company.

Buffett spoke four days after Kraft Heinz said it had taken a US$15.4 billion writedown for its Kraft and Oscar Mayer brands and other assets, slashed its dividend, and that the U.S. Securities and Exchange Commission was probing its accounting.

Kraft Heinz’s share price sank 27.5 per cent on Friday, causing Berkshire to lose US$4.3 billion on its stake. Berkshire owns 26.7 per cent of Kraft Heinz. Shares rose 0.7 per cent to US$35.21 in early trade on Monday.

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