Cadbury shares rise amid take-over speculation
SHARES in Cadbury Schweppes surged ten per cent amid speculation that a US investor could press for a break-up of the confectionery empire.
The Bournville company confirmed US activist investor Nelson Peltz had built a 2.98 per cent stake in the firm, which employs 3,000 in Birmingham.
Cadbury shares closed last night up 10per cent at 602p, valuing the business at £13 billion.
Mr Peltz is well known for his involvement with US food company Heinz, in which he bought a 5.5 per cent stake last year.
He led a group of investors in a battle with management, campaigning for dramatic cost-cutting and greater brand investment. The dissidents won two board seats.
A broker at a European bank described the latest news as "very significant" with investors digesting the possibility that Mr Peltz could press for a break-up of Cadbury's.
The Transport and General Workers Union expressed concern.
"Cadbury's is an iconic British brand and a very successful company which does not need the attention of Mr Peltz," said Brian Revell, T&G national organiser for food and agriculture.
"His intervention in Heinz has been a ruthless pursuit of profit for shareholders."
"Cadbury, with its Quaker background, has been an enormous success for stakeholders, shareholder and workforce.
"We want to preserve that."
