So Cadbury Schweppes has done it after all. There had been growing concerns that the credit crunch could scupper its plans to demerge its US drinks business. Today the company has banished those fears.
It has agreed the debt facilities for the drinks business - which was the key to success - set a date of May 7 for the move, provided of course it gets shareholder approval. The drinks business will have debt of $3.8bn (£1.9bn), with the remaining chocolate business having borrowings of £1.65bn.
Graham Neale of Killik & Co said: "After disappointing on February 19 with the confirmation that no capital return would be paid, today's announcement reveals that debt financing for the Doctor Pepper Snapple Group has been achieved. The statement allays fears that turbulent credit market conditions would lead to a delay in the demerger process."
Panmure Gordon issued a buy note, saying: "While there will inevitably be concerned about the physical demerger process, we believe there will be more domestic US funds buying than UK domestic funds selling, and we see any weakness on this basis as a buying opportunity."
Overall it has been a bright start to the day, with the FTSE 100 now up 59.3 points at 5688.4.
Insurer Friends Provident added 3% after in-line figures, and news that finance director Jim Smart was leaving in the summer. Investors are waiting for news of the intentions of US private equity group JC Flowers.
Miners were mixed, with Antofagasta14.5p higher at 742.5p after an expected 3.8% fall in annual profits. But Xstrata - recently lifted by bid talk - fell 124p to £37.10.
