Pepsi in Pursuit of Information on Cadbury

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Pepsi in Pursuit of Information on Cadbury

09/27/2005
PepsiCo Inc. has requested information on the sale of Cadbury Schweppes plc's European beverages business, which is expected to sell for more than $1.8 billion, the Financial Times reported. The U.S. soft drinks and snacks maker is understood to have asked for the information memorandum on the sale of the beverage arm.

Cadbury launched the auction of its European drinks business earlier this month, sending out information to potential buyers and setting a mid-October deadline for initial bids.

Cadbury has hired U.S. investment bank Goldman Sachs to sell the business -- home to brands such as Schweppes tonic water, Orangina and Oasis -- to focus on its confectionery and North American and Australian drinks. Proceeds of the sale will be used to cut the firm's 4.3 billion pound debt as of the end of June.

The move marks another attempt by Cadbury to sell the drinks business after the group's attempts to sell all its non-U.S. soft drinks business to Coca-Cola fell foul of regulators in 1999.

Pepsico was not immediately available to comment.