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Latest Business News

Danone Shares Soar on Rumors of Pepsi Bid

Tuesday, July 19, 2005 3:55:12 PM
By LAURENCE FROST

PARIS (AP) - Shares in Groupe Danone SA, the world's largest dairy products maker and No. 2 bottled water producer, soared Tuesday on rumors of a possible bid by U.S.-based PepsiCo Inc.

Both companies declined to comment on the likelihood of a bid after shares in Danone jumped as much as 14 percent before settling back to close 10.2 percent higher at 87.60 euros ($104.81), making it the day's biggest gainer in Paris.

PepsiCo spokesman Tod McKenzie repeated the company's July 6 denial of a press report that PepsiCo had acquired 3 percent of Danone, the maker of Dannon yogurt and Evian mineral water, but stopped short of denying that an offer was being considered.


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