Cadbury Schweppes has called off the £6.5bn auction of its American drinks arm and will instead float the business. The Times. The Independent. The Daily Telegraph

The company abandoned the sale, for which the deadline had already been extended from July, because the deterioration in the world credit markets.

‘While the board continues to be committed to the principle of maximising shareowner value, it does not believe current market conditions will facilitate an acceptable sale process in the foreseeable future,’ the sweets-to-drinks giant said in a statement yesterday.

The company now hopes to list shares in the drinks business on the New York Stock Exchange by the second quarter of next year and also announced a management reshuffle. Chairman Sir John Sunderland, who has been at the candy giant for 40 years, said he will retire next spring.