Kellogg (K) Falls as Warren Buffett Airplane Caper Rumor Has No Merit

July 20, 2016 9:42 AM EDT

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(Updated - July 20, 2016 10:59 AM EDT)

Kellogg (NYSE: K) shares fell sharply from speculative highs Wednesday after CNBC's David Faber said recent takeover rumors involving a Warren Buffett Berkshire Hathaway takeover of the company have no merit.

Faber said the rumors, in addition to sprouting up on the recent WhiteWave/Danone deal, can be traced back to a hedge fund that tracks airplane tail numbers. The hedge fund presented data on airplane activity between Omaha (Warren Buffet HQ), Battle Creek (Kellogg HQ), Chicago (Kraft Heinz/3G), and Southern California (Charlie Munger and Director).

While interesting, Faber said, after talking to people that would "absolutely" know, they indicate "there is nothing going on here."

Shares of K last traded down 3.7% to $83.74.

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