Multiple bottlers, other industry executives interviewed in last week predict likelihood increases Cadbury Schweppes soon invests in, or buys, one or more 3rd-tier bottlers (BD 8/1/97). Source says if deal happens, basic agreement by year-end likely with closing in 1Q 1998. Knowledgeable executive says Cadbury board meets 10/31/97, adds "it's going in the right direction." Other executive: "I think things are moving quickly." Bottler notes Cadbury works with investment banker Schroder & Co. Re why no word yet from Cadbury, executive explains: "If Cadbury made a decision, or is working on a deal, to buy Select (Beverages) and/or Beverage America, they wouldn't announce it now, there's no deal yet." Executive: "It sounds like Cadbury cooled on this a few weeks ago, but it's heated up again." Competing franchise company CEO: "It sounds like they're going to do it." Analyst: "I think Cadbury would put bottlers together, strengthen them and do a public offering in a few years." Lockups. Executives say Select, Beverage America "agreed not to sell to others (for period of time) and to give Cadbury information ... But there are no letters of intent or other agreements yet."

Players. Executives say Cadbury's initial acquisitional intent focuses on Select Beverages, Darien IL; Beverage America, Holland MI; All-American, Oklahoma City. But others say mega-bottler Dr Pepper Turner -- which recently acquired 7UP/RC Southern CA (BD 3/7/97) -- may also play investment/management role. Executive: "Jim Turner might want to run the whole thing, the way Henry (Schimberg) runs CCE." Turner is CEO of Dr Pepper Texas. Schimberg is president of CCE. Timing. Multiple bottlers/analysts/ executives predict if Cadbury does deal, it will "try to do it sooner than later." Analysts refer to UK tax/accounting advantage if deal done before year-end. Value creation? Industry executives also say -- if additional Cadbury brands are going to fall out of Coke/Pepsi systems into 3rd-tier bottlers -- it makes sense for Cadbury to buy before bottlers get additional volume. Executive: "Accretion of bottling rights and value could partly offset pressure on franchise side."

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