Pepsico may once again be hungry for Danone

20th September 2005, Comments 0 comments

PARIS, Sept 20 (AFP) - The price of shares in French dairy group Danone rose strongly on Tuesday as speculation re-emerged on the Paris stock exchange that American confectionary giant Pepsico was preparing a bid for the company.

PARIS, Sept 20 (AFP) - The price of shares in French dairy group Danone rose strongly on Tuesday as speculation re-emerged on the Paris stock exchange that American confectionary giant Pepsico was preparing a bid for the company.

At 12pm, shares in Danone were showing a gain of 2.78 percent to 94.20 euros, while the CAC 40 index of leading shares was 0.46 percent higher at 4,526.28.

"Apparently Pepsico has signed up (investment banks) UBS and Morgan Stanley for the operation," said a Paris-based broker. "But we don't know where the rumours came from."

This was first reported by the Financial Times in July this year, sparking an outcry in France and drawing angry comments from a host of senior political figures worried at the potential loss of a French corporate icon to a US company.

Copyright AFP

Subject: French news

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