Speculation rife that Kraft Foods may takeover Danone
The share prices of Danone shot up due to the speculation among traders in the Paris Stock Exchange
30/11/05 Shares in Danone had surged by as much as 3.7% by midday Tuesday following talk that Kraft may be preparing a bid, although neither company has commented officially on the speculation.
Formerly rumored to be a possible takeover target for US soft drinks and snack food giant PepsiCo, Danone, the maker of Evian mineral water and Lu biscuits, may now be the subject of interest for its US rival Kraft Foods.
Danone is regularly the subject of takeover speculation due to its operating health, product portfolio and the fact that its share capital is spread among a wide number of investors. The French company rose by as much as 20% earlier this year as a result of talk that PepsiCo was poised to launch a bid.
PepsiCo's bid failed to progress, however, after the French government and trade unions said they would fight any attempt to buy Danone.
The latest speculation is thought to have been prompted in part by suggestions that Altria, Kraft's parent, may spin off its Kraft unit, which would enable it to make a bid for Danone. Traders have emphasized the heavily speculative nature of reports at this stage.
http://www.drinks-business-review.com/article_news.asp?guid=58F1C9FB-E351-4438-BA55-8A7C061AD7D1