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Cadbury, Pernod mull deal
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September 29, 2000: 9:55 a.m. ET
British drink firm in talks with France's Pernod Ricard for Orangina
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LONDON (CNNfn) - Cadbury Schweppes PLC looked set to consume another brand Friday after announcing that it is talking to France's Pernod Ricard SA about buying Orangina and certain other non-alcoholic beverage brands.
The British drink and candy firm, which last week bought Snapple Beverages Group for $1.45 billion, said the preliminary talks for Orangina "may or may not lead to an eventual agreement."
The deal was valued at around £450 million ($657 million), the Financial Times reported.
Cadbury (CBRY) executives didn't immediately return calls seeking comment.
Pernod Ricard (PRI) shares surged 4.6 percent to  55.15 after the announcement while Cadbury shares fell 0.9 percent to 398.5 pence in London.
If successful, the deal would fulfil Pernod Ricard's long-hoped for plan to get rid of Orangina, which is profitable, but in need of a boost to fund the soft drink's international development.
French antitrust regulators finally ended Coca-Cola Co.'s (KO: Research, Estimates) two-and-a-half year efforts to buy Orangina in November. The deal would have increased Coke's share of the French soft drinks market to 70 percent from 60 percent.
Pernod Ricard, which also produces Havana Club Cuban rum and Jacob's Creek wine, has been looking to focus on its wine and spirits business. The company recently teamed up with Britain's Diageo PLC to make a joint bid for the wine and spirits unit of U.S. entertainment and beverage maker Seagram Co. (VO: Research, Estimates), which industry analysts value at around $7 billion. 
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