LONDON – The world's largest candy maker said it will spin off its beverage business into a separate company instead of selling it because a satisfactory offer is unlikely to surface.

Cadbury Schweppes PLC, the maker of Dr Pepper and 7-Up, has given up its seven-month search for a buyer. The company said the search was derailed by collapsing credit markets. Now, it will list its beverage business on the New York Stock Exchange through an issue of shares to Cadbury's existing shareholders. The process won't be completed before the second quarter of 2008, Bloomberg reports.

Cadbury announced in March its intention to separate the drinks arm from its candy business. The candy business will be called Cadbury PLC, while a name for the drinks business has yet to be decided, though Chief Executive Todd Stitzer said it would not be called Schweppes.

Stitzer declined to comment on reports that the company was looking to combine with U.S. rival Hershey Co. "We don't comment on rumors and speculation," he said.

Cadbury also said its candy business enjoyed a strong third quarter, with revenues up 10 percent, bringing year-to-date revenue growth to 7 percent, compared with its full-year target range of 4 to 6 percent.