Takeover talk boosts Cadbury shares

Shares in Cadbury Schweppes surged today after it emerged an American financier had amassed a 3% stake in the Dairy Milk firm.

Nelson Peltz, a billionaire who sold fruit juice business Snapple to Cadbury in 2000, took a 5% holding in food giant Heinz last year.

Cadbury shares were up 10% today as the move by Mr Peltz, who is regarded as an activist shareholder, fuelled takeover speculation and raised the prospect of change within the UK group.

He has been chairman and chief executive of restaurants firm Triarc – the former owner of Snapple – since 1993.