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Last Updated: Wednesday, 10 October 2007, 06:59 GMT 07:59 UK
Cadbury scraps drinks sale plan
Drinks dispenser
The drinks business includes brands such as Snapple
Cadbury Schweppes has decided to spin off its North American drinks operation after "difficult" credit conditions hampered plans for a sale.

The company said it would now focus on listing the business - which has brands such as Dr Pepper, 7Up and Snapple - on the New York Stock Exchange.

The demerger is expected to be completed in mid-2008.

Cadbury also said that it had enjoyed strong confectionery sales during the third quarter, with revenue up 10%.

Credit casualty

The UK firm behind Britain's much-loved Dairy Milk chocolate bar has been searching for a buyer of its drinks arm since March.

But the turmoil in the financial markets over the summer hurt the ability of private equity firms to borrow money from banks to finance their purchases.

This hit the sale of Cadbury's beverage business, which was reportedly worth up to 7bn as a separate entity.

"While the board continues to be committed to the principle of maximising shareholder value, it does not believe current market conditions will facilitate an acceptable sale process in the foreseeable future," the firm said.

Americas Beverages will seek an initial public offering through an issue of shares to existing shareholders.

SEE ALSO
Cadbury's to go ahead with split
01 Aug 07 |  Business
Debt worries extend Cadbury sale
27 Jul 07 |  Business
Cadbury shares rise on bid talk
18 May 07 |  Business
Cadbury faces salmonella action
23 Apr 07 |  West Midlands
Cadbury plans to split business
14 Mar 07 |  Business
Cadbury shares fizz on US stake
13 Mar 07 |  Business

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