In a major move, Buffett, CEO of Berkshire Hathaway, has opposed Kraft's proposal of issuing shares of $16 billion to Cadbury.

Berkshire Hathaway owns 138 million shares of Kraft, which gives it 9.4 percent stake in the Northfield, Ill..

Kraft will get $3.7 billion from the selling of North American frozen pizza business to Nestle. This amount will be added in the offer of Cadbury, but Cadbury rejected this, calling it as "derisory".

For convincing its share holders for their approval, Kraft had already started mailing voting materials to them. Vote is scheduled for Feb. 1.

In the mail, Kraft also noted that not even a single vote can stop Kraft from issuing the planned shares in the Cadbury deal.

Kraft's proposal of buying Cadbury in September was quickly rejected by Cadbury itself, and the company said this "fundamentally undervalues" the company.

Against Cadbury share of 800 pence, Kraft is offering 740 pence per Cadbury share.

Kraft said that it can give 60 pence more but only after the sale of frozen pizza sale to Nestle but the value of offer will not change.

Nestle, is also speculating the bid for Cadbury though it will not participate in the final bid Rosenfeld said, "Kraft Foods will continue to maintain a disciplined approach with respect to the acquisition of Cadbury in line with the criteria outlined in our offer documentation".