PepsiCo not bidding for Danone, says paper

PARIS - US drinks giant PepsiCo, rumored to be mulling a bid for French food group Danone, has told the French market regulator AMF that it is not preparing a takeover, French newspaper Les Echos said in its edition to be published on Monday.

Les Echos said it had been told by AMF that PepsiCo had informed the market regulator that "it was not preparing any such operation at the moment."

The paper said it had received the information on Sunday evening from AMF. It also said there could soon be a full inquiry into Danone's recent share movements.

Rumors of a bid have pushed Danone's shares up more than 20 per cent in the last two weeks.

The possibility of Danone, the maker of yogurts, Evian mineral waters and Tiger and LU brand biscuits, being the subject of a takeover from a US firm has prompted politicians to issue a string of warnings against any such move.

French President Jacques Chirac came out in defence of the company on Thursday, saying he was "vigilant and mobilized" should PepsiCo mount a bid.

- REUTERS