UK confectionery giant Cadbury Schweppes to preparing to announce a £350m (US$507m) takeover of Danish chewing gum firm Dandy, according to a report in a UK newspaper.

The Sunday Telegraph reported that the merger was imminent but a spokesman from Cadbury refused to comment.

Market watchers have seen Cadbury make several acquisitions of chewing gum brands recently, including the 2000 buyout of the French chewing gum and candy arm of US food giant Kraft.

Privately held Dandy produces the Stimorol, Dirol and V6 chewing gum brands.