Cadbury investor dumps 3.5 million shares after gains

Cadbury Plc investor Nelson Peltz, the billionaire who pressured the confectioner to spin off its drinks unit, sold part of his stake as speculation of rival bids for the company pushed up the stock.

Peltz's Trian Fund Management LP said in a filing today that it sold around 3.5 million Cadbury shares yesterday for between 805 pence and 812.5 pence, near this week's 814 pence record. Trian retains an interest in about 36.8 million Cadbury shares, or 2.7 percent, spokeswoman Anne Tarbell said by phone.

Northfield-based Kraft Foods Inc. has bid about 10.2 billion pounds ($17 billion) for Cadbury. The shares have gained for two weeks on speculation Nestle SA, Ferrero SpA or Hershey Co. may mount a rival approach. Analysts including Panmure Gordon's Graham Jones have said Cadbury Chief Executive Officer Todd Stitzer's decision to bow to Peltz's pressure and spin off what is now Dr Pepper Snapple Group Inc. left the U.K. company exposed as a takeover target.

"The sale was the result of adjustments Trian made to its portfolio," Tarbell said, declining to comment further. Trian also holds Kraft shares.

Peltz, 67, first disclosed Cadbury holdings in March 2007, when the shares traded at about 600 pence. The stock closed 3 pence higher at 811 pence today.