Shares in Cadbury Schweppes rose 1.6% to finish on 576p yesterday as rumours resurfaced that the confectionery giant could attract takeover interest. Analysts at Cazenove said Cadbury's confectionery business could become a takeover target when it demerges the business from its US beverages unit next month. “It would make commercial sense for Kraft to acquire Cadbury, particularly is Europe and Latin America, although Kraft would need to make significant disposals to afford a cash bid,” Cazenove wrote in a note. “It would also make strategic sense to combine Hershey and Cadbury in the US, although it is unlikely near term,” it added.

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