In March 2007, Cadbury Schweppes plc said it would spin off its North American beverages business, two days after activist investor Nelson Peltz bought up almost 3% of the confectioner. On Friday, shareholders approved the separation of the confectionery and Americas Beverages businesses for May.
Analysts are saying that Cadbury ought to strike a merger deal before it becomes a takeover target. The New York Times reports that a deal between Cadbury and Hershey Co. would be
strategically sound, as Cadbury lacks presence in the U.S. chocolate market, while Hershey is looking to expand overseas. But that combo could face challenges from Kraft Foods Inc. or Wm. Wrigley Jr. Co., which wanted to combine U.S. operations with Hershey in 2002.
Upon completion of the split, Cadbury will be the holding company of the confectionery business, with its primary listing on the LSE, and ADRs listed on the NYSE. Dr Pepper Snapple Group Inc., or DPS, would be the holding company of the Americas Beverages business, listed on the NYSE. Based in Plano, Texas, DPS will be led by the existing Americas Beverages executive management team, with Larry Young as president and CEO and John Stewart as CFO.
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Baz HiralalGo to the story from The New York TimesSee the Dealwatch item
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