Britain's Cadbury Schweppes said today it was extending the timetable for the sale of its North American drinks business due to the turbulence in debt markets.
Sources say the auction may be delayed by a matter of weeks, but they still expect the business to fetch £7 billion to £7.5 billion sterling with a private equity consortium the most likely final buyer of the business.
Cadbury, the world's biggest confectionery group, said the sale process for its North American beverage business is ongoing, and that interest remains strong.
"However, the leveraged debt markets have experienced extreme volatility in recent days. As a result, a decision has been taken to extend the sale timetable to allow bidders to complete their proposals against a more stable debt financing market," the group said in a statement.
Cadbury shares dipped 2.6 per cent to 574 pence by 7.25am in a London stock market off 0.6 per cent.
Blackstone Group, teaming up with Kohlberg Kravis Roberts and Lion Capital, was thought to be the front runner with a rival private equity grouping including Bain Capital Partners, Thomas H. Lee Partners and TPG also bidding, sources added.
Originally, final bids for the drinks business had been due on Monday, July 30th.