Buffett sets up roadblock to Kraft's Cadbury bid

Kraft Foods' bid to buy chocolate maker Cadbury hit a roadblock Tuesday after Warren Buffett's Berkshire Hathaway voted against a proposal to fund the deal by issuing millions of new shares.

Berkshire Hathaway, which is Kraft's biggest shareholder, said the plan to issue up to 370 million new shares would "give Kraft a blank check," allowing it to change the offer for the U.K. chocolate maker in any way it wishes.

The statement came after Kraft said it will sell its North American pizza business to Switzerland's Nestle for $3.7 billion and use the proceeds to improve the terms of its bid for Cadbury. Kraft's pizza business has been one of its better growth units in North America, analysts said.