28 March 2007 – Talking to analysts, Cadbury Schweppes' CEO Todd Stitzer said that a merger with Hershey would make strategic sense for the UK confectionery and soft drinks firm, which is planning to separate both divisions.
The ‘Financial Times’ reports that Stitzer told analysts that a deal with Hershey would make more sense now than it would have 5 years ago when Cadbury and Nestlé thought of making a joint bid for Hershey.
Stitzer, however, believes that a Hershey merger would be difficult to manage due to the US firm's ownership structure, adds the FT.
Last week, FLEXNEWS reported that Cadbury Schweppes had been contacted many times with takeover approaches with a strong interest from leading private equity firms. Kohlberg Kravis Roberts, Bain Capital and Texas Pacific Group were reported as possible bidders.
The ‘Times’ newspaper also reported that, due to the strong interest in the beverage unit, Cadbury Schweppes is more likely to sell its drinks business rather than float it.