Cadbury Seeking Cost Cuts: Paper

Britain's Cadbury Schweppes is looking to find about 300 million pounds ($584 million) of yearly cost savings to bolster its confectionery profits, the Sunday Times reported.

The maker of Dr Pepper and Dairy Milk unveiled plans on Thursday to split its sweets and drinks units, fuelling speculation of a 7 billion pounds ($13.5 billion) sale of its beverages business.

The move was widely regarded by analysts as Cadbury responding to pressure from investors led by U.S. billionaire Nelson Peltz to sell or spin off its American drinks unit.

Cadbury, the world's largest confectionery maker, said the move would help unlock value for shareholders and comes after it received support for the split from over 40% of its shareholders in meetings with them over the last month.

The Sunday Times quoted sources close to the company saying that detailed proposals were nearly settled to save 300 million pounds of annual costs after the disposal of the U.S. drinks business.

The company was unavailable to comment on the report.