Peltz in Arabic Alliance to Extend Cadbury Stake

12 December 2007

NEW YORK: Trian Partners, the investment arm of activist stockmeister Nelson Peltz, has turned to the Gulf of Arabia to help fund an uplift in its Cadbury Schweppes stake.

The Qatar Investment Authority, a near-bottomless source of petrodollars, has teamed with the former scourge of Wendys and H J Heinz to extend Trian's holding in the UK headquartered confectionery and soft drinks titan.

The alliance has boosted Trian's holding from 3.4% to slightly under 5%, according to those in the know.

Money market denizens - currently an endangered species - liked the look of the deal and Cadbury shares rose by nearly 2% to £6.45 ($13.19; €8.97) on news of the uplift.

Although the increased stake by Trian and QIA ups their leverage on Cadbury's management, the duo are thought unlikely to seek any strategic changes.

They are said be supportive of Cadbury's plans to spin off (as opposed to selling) its drinks business, around which private equity predators continue to hungrily circle.

Data sourced from Financial Times; additional content by WARC staff