Issue
It is often necessary to replace delimiters in a file with a form the receiving party expects. sed is my favorite method of meeting the need.
Solution
Replace double pipes with tabs
sed 's/||/ /g' file.in > file.out
Note: If you find the tab key simply does not work, try CTRL+V+I from your terminal.
Reference
http://forums.devshed.com/unix-help-35/replacing-tabs-with-spaces-372623.html
Caveats
Special consideration (and a regex) will be required for data where delimiters are present in the data itself. Consider your use case and apply appropriately.