Thursday, March 15, 2007

Cadbury to split up

Cadbury Schweppes is going to cut itself in two, breaking off the confectionary and beverage units.

The company intends to spin off its Plano-based U.S. beverages arm, which makes products including Snapple and Dr Pepper, from the rest of Cadbury. That would leave its confectionery business, which has products such as Dairy Milk chocolate and Trident Gum.

Cadbury said it was still evaluating the options for the split and would provide further information in a trading update due in mid-June.

The company is apparently giving into pressure from one of its new investors, Nelson Peltz. The Dallas Morning News speculates that the beverage division, if sold off, could bring in as much as $14 billion.

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