Cadbury Schweppes shares leapt today on takeover speculation, as it emerged that US financier Nelson Peltz has a near-3% stake.
US businessman Nelson Peltz has built up a 2.98% stake in the British confectionery and soft drinks giant, Cadbury confirmed in a statement that was prompted by market speculation.
In London this evening shares had surged 10.46% to close at 602 pence - the highest level for the stock since September 2005.
The Financial Times reported today that Peltz had started building a stake in the group. He has a history of taking stakes in companies prior to forcing through change.
Peltz had sold the fruit juice business Snapple to Cadbury in 2000, and took a 5.5% holding in US food giant Heinz last year, when he fought for representation on the board before introducing cost-cuts.
He has also emerged as the largest shareholder in the jewellery group Tiffany's, with a 5.5% stake, and was thought to have been one of the unsuccessful bidders for Aston Martin, which was sold by Ford this week.
Cadbury Schweppes' current stock market capitalisation stands at about £12.6 billion.
