Cadbury to demerge sweets and drinks businesses
|
|
|
| Posted
:
Thu, 15 Mar 2007 08:30:01 GMT |
| By
:
Agencies |
| Category
:
US (Business) |
| News Alerts by
Email ( click
here ) |
|
US Business News |
Home
|
|
|
|
LONDON (Reuters) - Britain's Cadbury Schweppes Plc on Thursday said it was planning to split its global confectionery division and its American soft drinks into two separate businesses to help unlock value for shareholders.The core confectionery side will contain Dairy Milk chocolate and Trident chewing gum, while the soft drinks side would own the Dr Pepper and Snapple brands. Further details on the split will come with the group's trading update on June 19.Cadbury said following its annual results on February 20 it met with major shareowners holding around 40 percent of its shares, and they were positive about the group's plans for enhanced growth and returns, and plans for separation.The move comes after Cadbury, the world's largest confectionery group, revealed on Tuesday that U.S. activist investor Nelson Peltz had taken a 2.98 percent stake and analysts said Peltz would pressure Cadbury to split into two."Separating these two great businesses will enable two outstanding management teams to focus on generating further revenue growth, increasing margin and enhancing returns for their respective shareowners," said Chief Executive Todd Stitzer in a statement.Cadbury shares ended on Wednesday at 602 pence valuing the group at 12.6 billion pounds ($24.2 billion), but analysts said if the group was split into two focused groups its combined value would increase significantly.
(c) Reuters 2007. All rights reserved. Republication or redistribution of Reuters content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters and the Reuters sphere logo are registered trademarks and trademarks of the Reuters group of companies around the world.
|
|
|
|
|
|
Related News
Five more US bank failures bring total for 2009 to 120
New York - Bank failures in the United States have risen to 120 this year as five more regional institutions were added to the list, the US agency that guarantees the safety of bank deposits said. United Commercial Bank in San Francisco with assets o...
US stocks climb slightly despite double-digit jobless rate
New York - US stocks posted mild gains Friday to end the week as investors shrugged off government figures that put the unemployment rate above 10 per cent. The Labour Department said the jobless rate hit 10.2 per cent in the month of October, the hi...
US joblessness hits 10.2 per cent, highest in 26 years - Summary
Washington - The US unemployment rate surged to 10.2 per cent in October, the highest in 26 years as another 190,000 people lost their jobs, the Labour Department reported Friday. The figure comes after a 9.8-per-cent jobless rate in September and wa...
US joblessness jumps to 10.2 per cent, highest since 1983 - Update
Washington - The US unemployment rate surged to 10.2 per cent in October, the highest in 26 years, as another 190,000 people lost their jobs during the month, the US reported Friday. The figure reported by US Labour Department came after the 9.8 per ...
US jobless rate jumps to 10.2 per cent
Washington - The US unemployment rate surged to 10.2 per cent in October as another 190,000 people lost their jobs, according to US Labour Department figures released Friday. The jobless rate stood at 9.8 per cent in September. Unemployment had been ...
Bulls stop James, edge Cavs - Summary
Los Angeles - The King couldn't deliver in the clutch. Luol Deng and Joakim Noah combined to deny LeBron James a potential game-winning drive in the final seconds as and the visiting Chicago Bulls snapped the Cleveland Cavaliers' three-game winning...
Mortgage lender Fannie Mae posts nearly 19-billion-dollar loss
Washington - US mortgage lender Fannie Mae said Thursday that it would seek 15 billion dollars in federal aid, after posting its ninth consecutive quarterly loss. Fannie Mae reported a net loss of 18.9 billion dollars in the third quarter of 2009, co...
|
|
|
|
|
|
|
|
