India's Tata eyes Cadbury's Snapple - report
MUMBAI, June 29 (Reuters) - India's Tata group is likely to submit a bid for Cadbury Schweppes Plc's (CBRY.L) Snapple range of beverages, the Economic Times said on Friday.
The Tata group, India's second-largest private-sector conglomerate, is in talks with private equity funds Blackstone (BX.N) and Lion Capital and could join them as a minor partner, the newspaper said, in an unsourced report.
Tata is not interested in the entire beverages portfolio, and wants the right to carve out Snapple if the Blackstone consortium emerges winner, the paper said.
The Tata group's "financial exposure in the deal is estimated to be just over $2 billion", it said.
Cadbury, the world's largest confectionery company, is getting ready to separate its drinks arm, which includes Dr Pepper, 7UP, Snapple and Hawaiian Punch.
Sources have said at least two groups of private equity firms were bidding for the business and a U.S. trade publication recently reported Coca-Cola Co. (KO.N) may be interested in buying Snapple.
Snapple, which sells flavoured teas, lemonades and juice drinks, was the third-largest U.S. bottled tea brand in the first quarter.
Tata group company Tata Tea Ltd. (TTTE.BO), the world's second-largest branded tea firm, in May sold its 30 percent holding in vitaminwater maker Glaceau to Coca-Cola for about $1.2 billion, nearly double what it paid last year for the stake.
A senior company official said at that time it was looking for "a beverage target in the U.S.".
A Tata Tea spokeswoman declined comment on the Economic Times report.
Tata Tea, which is looking to expand its non-tea portfolio, recently bought a controlling stake in an Indian bottled water brand, besides herbal and fruit tea brands in the United States and eastern Europe.
((Reporting by Rina Chandran, editing by Ranjit Gangadharan; Reuters Messaging: rina.chandran.reuters.com@reuters.net; +91 22 6636 9251)) Keywords: TATA CADBURY/
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