Mumbai: Cadbury Schweppes Plc has rejected a private equity bid for its North American soft drinks unit valued at between £6.4-6.9 billion pounds ($13-14 billion) due to the financing of the offer.

The consortium of Blackstone Group LP, Kohlberg Kravis Roberts & Co. and Lion Capital offered Cadbury wanted Cadbury to be involved in part of the financing of the deal, sources pointed out.

Cadbury, the world''s largest confectionery group, declined more due to the financing rather than the value of the bid, industry sources said.

Under the terms of the deal, Cadbury would have had to put up a third of the financing - a move considered to be risky for the company''s shareholders.

Cadbury had said in March it would hive off its Dr Pepper and 7UP unit, and a sale to private equity buyers seemed most likely. However, the auction was delayed as turbulence hit the debt markets in late July.

Cadbury, the maker of Dairy Milk and Trident gum, is still committed to separating the drinks business and already reports it as a discontinued business. However, it may now opt to demerge the drinks business rather than sell or float it after problems in the debt market made it more difficult for private equity firms to handle high cost deals.

Cadbury, meanwhile, announced the recall of thousands of chocolate bars in the UK after it discovered the nut allergy labels were missing, the company said.

A printing error led to the omission of a message warning consumers that Dairy Milk Double Choc packs could contain traces of nuts, the company said in a statement
Nut allergy sufferers should not eat the recalled bars and should contact the company for a refund, Cadbury said. It added that the bars were safe for people who did not suffer from nut allergies.

No other Cadbury Dairy Milk products were affected, the company said. Cadbury Schweppes PLC was fined 1 million pounds (€1.48 million US$2 million) in July for salmonella contamination of its chocolate products.