Cadbury splits sweets and drinks units

Britain's Cadbury Schweppes today announced plans to split its confectionery and drinks businesses to boost the value of its …

Britain's Cadbury Schweppes today announced plans to split its confectionery and drinks businesses to boost the value of its shares.

Cadbury said the move will help unlock value for shareholders and comes after it had spoken and received support for the split from over 40 per cent of its shareholders over the last month.

Further details on the split will come with the group's trading update on June 19th.

The news sent its shares higher, but analysts said it will make both more vulnerable to predators.

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Cadbury shares rose 4.8 per cent to 631 pence by 8.25am to be the FTSE 100 index's biggest gainer, valuing the group at around £13.4 billion sterling.

The company traces its origins back to 1783 when Jacob Schweppes perfected his process for manufacturing carbonated mineral water in Switzerland, while in 1824 John Cadbury opened in Britain selling cocoa and chocolate.

The two household names merged in 1969 to form Cadbury Schweppes.