Cadbury gives more time for drinks sale

Cadbury Schweppes was today forced to delay the £8bn (€12bn) sale of its US drinks business as the crisis in the global debt markets saw bidders struggle to raise finance for the deal.

The confectionery giant said it would put back the sale timetable to allow suitors to put together their bids “against a more stable debt financing market”.

It was thought that Cadbury had set a deadline for offers next week and was expected to give an update on the sale along with its interim results on August 1.

Credit markets are currently under pressure amid investor fears over soaring borrower default rates for high-risk home loans in the US.

Persistent concerns over America’s sub-prime mortgage market sparked yet another global sell-off on stock markets yesterday, with the FTSE 100 Index shedding 3%.