Cadbury said to reject $14B drinks bid

LONDON (CNNMoney.com) -- Cadbury Schweppes is understood to have rejected a second offer for its drinks business from a group of private equity firms, according to a report published Friday.

The Financial Times said Cadbury's board is understood to have rejected an offer worth $13 to $14 billion from a group made up by Blackstone Group, Kohlberg Kravis Roberts and Lion Capital.

The rejection increases the likelihood that Cadbury will spin off its drinks arm, which includes Snapple, Dr. Pepper and 7UP, the newspaper said.

Cadbury (Charts) turned down the offer because it would have been involved in financing the sale, the FT said.

Financing for private equity deals has become much tougher in recent months as investors have shunned risky debt.