Cadbury shares soar as bidding war rumoured
The prospect of an £8bn (€11.7bn) bidding war for the drinks arm of Cadbury Schweppes caused shares in the blue-chip company to surge ahead today.
The interest in the US-based operation - best known for Snapple, 7Up and Dr Pepper - comes two months after Cadbury said it would split into two, with the creation of separate drinks and confectionery businesses.
However, the Daily Telegraph newspaper said a consortium made up of Blackstone, Kohlberg Kravis Roberts and Lion Capital had instructed advisers to prepare an offer ahead of the separation.
The group is also looking at the possibility of an offer for the whole of the company, which is worth £14bn (€20.5bn).
At least one other consortium of US buyout firms is also believed to be interested in the US drinks business, which is valued at £8bn (€11.7bn).
The bid interest meant shares in Cadbury opened 4% higher today.
An £8bn (€11.7bn) offer for the drinks business would be one of the UK's largest buy-outs, behind only Alliance Boots' recent £11bn (€16.1bn) takeover by KKR.
Blackstone and Lion Capital already own the European drinks division sold by Cadbury in 2005 for £1.85bn (€2.7bn).
Cadbury intends to give further details on its separation plans in June.
One option for the split could be to offer Cadbury Schweppes shareholders two shares for every one they hold - one in the confectionery arm and the other in the soft drinks business.
