Danone shares up on takeover report for €44bn firm

Shares in French food group Danone rose after the New York Post newspaper said in a report over the weekend that Danone could be a takeover target.

Danone’s shares were up 1.5% at one stage, valuing the company at around €44.2bn and putting them among the top performers on France’s CAC-40 market index. The shares have now risen 9.5% this year. The New York Post cited a stock market tipster as saying “someone is going to buy Danone”, with the tipster adding that “Danone could be bought by a Kraft or a Coke (KO.N), and the French government would allow it”.

A spokeswoman for Danone, the world’s largest yoghurt maker whose brands include Actimel and Activia, said the company had no comment to make on the report. Meriem Mokdad, fund manager at Roche Brune Asset Management, said that while Kraft and Coca-Cola were able to make a move on Danone, she remained cautious about the report. “Those two companies have the means of launching a bid for Danone, but nevertheless we remain quite wary about this rumour and will wait to see if any more details or developments emerge,” said Ms Mokdad, whose firm owns Danone shares.