Cadbury slims down with confectionery demerger.

Investors Chronicle, March, 2007

Cadbury Schweppes has announced that it is to demerge its confectionery and American beverages businesses, although no details were given as to how this will be executed. The move follows the purchase of 3 per cent of group shares by Nelson Peltz. Mr Peltz previously triggered a radical restructuring in Heinz, so it's no great surprise that something similar has happened at Cadbury.

The shares have risen 8 per cent since the announcement, reflecting the value the demerger may unlock. Fairly priced.