Danone: IPO of medical-nutrition business on cards

DANONE, the world’s biggest yogurt maker, was considering an initial public offering (IPO) of its medical-nutrition business after struggling to get the price it wanted in a sale, said people with knowledge of the matter. The company was preparing a possible stock market listing next year even as it still discussed a sale, the people said, asking not to be named because the details are not public. Danone had so far failed to reach an agreement after holding talks with Fresenius and buyout firms, as well as Hospira and Nestle, the people said. The unit, whose products include malnutrition supplement Fortimel, could be valued at more than e3 billion (R41.6bn), people familiar with the matter have said. Companies often pursue both a sale and an IPO at the same time to get the best value on an asset. Owners of companies including Spanish cable operator Grupo Corporativo Ono and UK roadside assistance business RAC, pursued listings before being acquired this year. Selling the unit may help Danone buy bigger assets as it seeks to reduce the significance of its dairy division. The French company’s management discussed potential acquisitions including US baby food maker Mead Johnson Nutrition at a board meeting last month. – Bloomberg