Cadbury Schweppes shares jumped over 10% in London trade Tuesday on news that corporate activist Nelson Peltz took a 2.98% stake in the company.
The maker of Dairy Milk chocolate and Dr Pepper soft drinks issued a brief statement to the London Stock Exchange following market speculation of Peltz's interest in the company.
Peltz has already shaken up ketchup maker H.J. Heinz after taking a 5.5% stake in the U.S. company last year. Peltz subsequently won a seat on the Heinz board, along with his ally Michael F. Weinstein, after a bitter proxy battle.
The pair headed an investor group that campaigned for dramatic cost-cutting measures and greater investment in Heinz brands, particularly its ketchup, in an attempt to boost shareholder returns.
Cadbury shares rose 3.9% to 566 pence ($10.93) on the London Stock Exchange.