After two weeks of speculation that PepsiCo was going to launch a hostile takeover bid for France’s Danone, shares of Danone went up 20%.
Now, PepsiCo has denied any plans to do so, and Danone has quickly lost 9% of its market value. Danone seems to at least be glad that the speculation is over.
In New York, PepsiCo shares eased 0.6 percent to $54.53, valuing the much larger U.S. company at $91 billion.
With strong positions in water, dairy products and biscuits, Danone is often seen as a potential bid target for rivals like PepsiCo or Nestle because of its dispersed shareholder base. Some 85 percent is in the publicly traded “float.”
But French fury at the notion of one of the country’s top companies being swallowed by an emblem of the American way of life provoked a barrage of protests.
“The excitement surrounding Danone shares should ease somewhat in the short term,” said Cyril Freu, an analyst with Ixis Securities. But “Danone remains an attractive target.”
PepsiCo shares fell 0.6% to $54.53 according to Reuters, making the company worth about $91 billion. Danone shares fell to 80.5 euros after reaching 92.65 euros.
Chris is a staff writer for murdok. Visit murdok for the latest ebusiness news.
