William Ackman's fund buys stake in Kraft

PORTLAND, OREGON: Pershing Square Capital Management LP, a hedge fund run by activist investor William Ackman, has purchased a roughly 2 percent stake in Kraft Foods Inc.

Kraft says the investor supports the food company's bid to acquire British candy maker Cadbury PLC but is urging it to limit the stock component of the offer. Kraft's bid is worth more than $16 billion.

Kraft confirmed the purchase Friday, saying the investment is a sign of ``great confidence'' in the company's management and prospects.