M&A

25 November, 2009

Nelson Peltz cuts Cadbury stake to 2.68 pct

LONDON, Nov 25 (Reuters) - Billionaire activist investor Nelson Peltz cut his stake in takeover target Cadbury Plc (CBRY.L) to 2.68 percent from 3.03 and said on Wednesday it was the result of adjustments his fund group made to its portfolio.

The move comes as Cadbury faces a hostile 9.8 billion pound ($16.4 billion) bid from Kraft Foods (KFT.N). The cash and shares offer from the U.S. food giant currently values Cadbury shares at 717 pence compared to its closing price of 809p.

Peltz's Trian Fund Management built up its 3 percent stake in Cadbury Schweppes Plc in early 2007 and put pressure on the board of the British group to spin off its North American soft drinks business and create pure confectionery group Cadbury.

"The sale was the result of adjustments Trian made to its portfolio. Trian continues to own interests in approximately 36.8 million shares of Cadbury stock," Trian said in a statement. (Reporting by David Jones; editing by Elaine Hardcastle) ((david.jones@thomsonreuters.com; +44 20 7542 7972; Reuters Messaging: david.jones.com@reuters.net)) ($1=.5979 Pound)

Source: http://www.reuters.com