Cadbury Schweppes PLC has extended the deadline for bids for its US drinks. The reason given is turbulence in leveraged debt markets in recent days and the extend sale timetable would allow bidders to complete their proposals against a more stable market. There were no details given of the revised timetable.

The company is still retaining the option of spinning off the business with a separate listing, though a straight sale of the US business, which includes the 7-Up, Dr Pepper and Snapple brands, is the favoured option, rather than a de-merger.

Investec analyst Martin Deboo said that Cadbury's US drinks unit is still a prized asset for US private equity groups, despite the volatility in the debt markets. With strong, stable cash flow and a North American focus, the business holds less risk than other acquisitions. Analysts estimate that a sale of the division could yield between US$14 billion to US$16 billion.