Soft drinks group Britvic is set for a stock market flotation of up to £700m.

Co-owners InterContinental Hotels, Whitbread and Allied Domecq persuaded PepsiCo to back the move after two years of wrangling.

The agreement was reached after Britvic renewed a 15-year bottling agreement with Pepsi who also get a 5% stake in Britvic.

If conditions are favourable, Britvic will be floated between 2005 and the end of 2008.