Speculation continues that PepsiCo, Inc. is planning a bid for French food company Groupe Danone SA, with both companies declining to comment.
Shares in Danone, the world’s largest dairy-products maker and No. 2 bottled water producer, soared Tuesday up 12.6% to $107.88 on the rumors, The Associated Press reported yesterday.
Danone’s many brands include Dannon yogurt and Evian mineral water.
The rumors continue following a July 6 report in French magazine Challenges that PepsiCo had built up a 3% stake in Danone. At the time of the report, PepsiCo issued a statement saying that the report was untrue.
“Our practice is not to comment on rumors or speculation about our company or its portfolio of businesses, and we will have no further comment,” PepsiCo spokesperson Mark Dollins, said in the statement.
A French radio report said that Pepsi would bid 115 euros a share, according to news reports. And the Les Echos newspaper reported that Danone would fight off a bid by PepsiCo.
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