Danone denies deal with PepsiCo; shares tumble

21st September 2005, Comments 0 comments

PARIS, Sept 21 (AFP) - Shares in French dairy group Danone fell sharply here Wednesday after its chief executive denied that the company had been negotiating a tie-up with US snack food giant PepsiCo.


PARIS, Sept 21 (AFP) - Shares in French dairy group Danone fell sharply here Wednesday after its chief executive denied that the company had been negotiating a tie-up with US snack food giant PepsiCo.

Danone shares were down 2.87 percent at EUR 91.30 in early afternoon trading on a generally weaker Paris market. The share had shot up 2.51 percent on Tuesday on new reports that PepsiCo had asked investment banks UBS and Morgan Stanley to study a possible offer for Danone.

But Danone chief executive Franck Riboud, in a statement carried on the group's website, said Wednesday: "There has not been and there are (currently) no negotiations with PepsiCo."

A Financial Times report in July that PepsiCo was preparing a bid for Danone sparked an outcry from senior political figures here worried about the potential loss of a French corporate icon to a US company.

Copyright AFP

Subject: French news

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