Cadbury Schweppes, which has been in discussions with private equity groups over a $16bn (€12bn) sale of its US drinks division, has become one of the first vendors to postpone an auction, as fears of a global credit market crunch sent stock markets tumbling.

A spokesman for Cadbury said the decision to postpone the sale of Cadbury Schweppes' US drinks division, revealed yesterday, was because of the "extreme volatility in recent days".