London, July 7: Shares in British food and drinks group Cadbury Schweppes Plc rose sharply on Monday, extending last week's gains on rumours of a takeover bid by Unilever Plc and suspected buying by US investors, traders said.

By 0831 GMT the shares, which jumped 12 per cent in the last two weeks, were up 12-1/2P At 559P."The rumours are that...with Unilever making these disposals, they are on the verge of some sort of acquisition," one trader said.

"And with this GrandMet/Guinness merger, brands are back in vogue again," he said.Dealers have been speculating how Unilever would use the $8 billion proceeds from its sale in June of four speciality chemicals firms to Imperial Chemical Industries Plc.

Shares in Cadbury, owner of US soft drink group Dr Pepper/Seven-Up, jumped from a low of 522P on Wednesday to a Thursday peak of 571P.

Traders said US institutions appeared to be heavy buyers.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.