During late trading yesterday, almost 17 million shares in the London-based company were traded (compared to the usual daily volume of around 12 million).
Furthermore, its share price climbed 13p to 567p - the highest gain in over two and a half years.
It is not the first time, however, that Cadbury Schweppes, which last year notched up turnover of €9.88 billion, has been linked with Hershey's, the US market-leader in chocolate-based confectionery.
One analyst described the likelihood of a private equity group stumping up more than €16 billion as a "tall order" and suggested that Hershey could only secure the acquisition through extensive debt restructuring (it currently, for instance, has a market capitalization of €13.2 billion).
Last year, US food and beverage conglomerate Kraft generated similiar speculation, after it divested its Altoids mint confectionery brand for €1.16 billion to compatriot confectioner Wrigley.
Analysts said at the time that this would have positioned it as an ideal buyer for the Cadbury business, as it would have largely avoided the scrutiny of the US Federal Trade Commission.
Cadbury's owns the Trident, Halls and Hollywood confectionery brands and is the world's fourth largest manufacturer of chocolate-based confectionery.