'Cadbury to get bids for US drinks unit'

New York/Philadelphia, June 13: At least two bidding groups plan to submit offers on Friday to acquire Cadbury Schweppes Plc's US beverage unit for as much as .8 billion (8 billion pounds), sources familiar with the situation said on Tuesday.

British-based Cadbury, the world's biggest confectionery company, plans to weigh the proposals before outlining its strategic plans and cost-cutting initiatives on June 19, sources said.

Cadbury may spin off the US beverage unit through an initial public offering, but a sale is more likely, one source said. A final decision on the unit, which includes 7-UP, Dr.

Pepper and Canada Dry Ginger Ale, may be several weeks away, other sources said.

One bidding group includes Bain Capital Partners, Thomas H.

Lee Partners and TPG, while a second team includes Blackstone Group, Kohlberg Kravis Roberts&Co. and Lion Capital.

Lion and Blackstone bought Cadbury's continental European beverages business for New York/Philadelphia, June 13: At least two bidding groups plan to submit offers on Friday to acquire Cadbury Schweppes Plc's US beverage unit for as much as $15.8 billion (8 billion pounds), sources familiar with the situation said on Tuesday.

British-based Cadbury, the world's biggest confectionery company, plans to weigh the proposals before outlining its strategic plans and cost-cutting initiatives on June 19, sources said.

Cadbury may spin off the US beverage unit through an initial public offering, but a sale is more likely, one source said. A final decision on the unit, which includes 7-UP, Dr.

Pepper and Canada Dry Ginger Ale, may be several weeks away, other sources said.

One bidding group includes Bain Capital Partners, Thomas H.

Lee Partners and TPG, while a second team includes Blackstone Group, Kohlberg Kravis Roberts & Co. and Lion Capital.

Lion and Blackstone bought Cadbury's continental European beverages business for $2.5 billion (1.85 billion euros) in February, 2006.

Meanwhile, a third bidding consortium is likely to include Cott Corp., which bottles beverages for Wal-Mart Stores Inc.

and one or more private equity firms, one source said.

Cadbury and Blackstone declined to comment, while Cott and the other private equity firms could not be reached immediately for comment.

In March, Cadbury, the maker of Trident chewing gum, Certs breath mints and Dairy Milk chocolate, unveiled plans to split its sweets and beverage units. That move came after investors, led by US billionaire investor Nelson Peltz, pushed the company to sell of spin off its US beverage unit.

Selling the beverage unit could leave the remaining confectionery business of Cadbury more vulnerable to a takeover, analysts have said.

Reuters.5 billion (1.85 billion euros) in February, 2006.

Meanwhile, a third bidding consortium is likely to include Cott Corp., which bottles beverages for Wal-Mart Stores Inc.

and one or more private equity firms, one source said.

Cadbury and Blackstone declined to comment, while Cott and the other private equity firms could not be reached immediately for comment.

In March, Cadbury, the maker of Trident chewing gum, Certs breath mints and Dairy Milk chocolate, unveiled plans to split its sweets and beverage units. That move came after investors, led by US billionaire investor Nelson Peltz, pushed the company to sell of spin off its US beverage unit.

Selling the beverage unit could leave the remaining confectionery business of Cadbury more vulnerable to a takeover, analysts have said.

Reuters>