Cadbury declines sale of beverage division

Source: Food and Drink Digital

Date :14/09/2007 10:04:36

Cadbury Schweppes PLC has rejected a private equity bid for its beverage division.

A private equity consortium including Blackstone Group LP, Kohlberg Kravis Roberts & Co. and Lion Capital offered Cadbury £6.4 billion to £6.9 billion but wanted Cadbury to be involved in part of the financing of the deal.

Cadbury - the world's largest confectionery group - declined the offer, believed to be due “to the financing rather than the value of the bid.”

In March the company announced that it would separate off its Dr Pepper and 7UP unit.

It seemed most likely that to be sold to private equity buyers until instability in the debt markets forced the auction to be delayed in late July.

Analysts said Cadbury was likely to choose to demerge the drinks business rather than sell or float it after problems in the debt market made private equity bids more difficult to finance.

Cadbury still intends to separate the drinks business and already reports it as a discontinued business.

September 14 2007