Shares in French food group Danone rose as much as 3.2 per cent this morning after a French magazine reported speculation that US soft drinks giant PepsiCo could offer €123 per share in a takeover bid.
Speculation that Danone is being eyed for takeover by PepsiCo has helped fuel a 38 per cent rally in the stock this year. It has beaten the DJ Stoxx index of food and beverage stocks by 14 per cent since January.
Magazine Challenges, the first to publish the PepsiCo takeover rumours that sent Danone's share price soaring in July, said in its latest issue that rumours were circulating within Danone that PepsiCo would offer 123 euros per Danone share.
"At Danone, the scenario of a takeover seems to be more and more accepted. The offer price in circulation internally is 123 euros," Challenges said.
It gave no source and there was no article to accompany a brief comment in the magazine.
Shares in Danone, which makes Evian mineral waters and Danone and Dannon brand yoghurts, clawed back ground lost on Wednesday.
Its shares closed 3.19 percent lower on Wednesday after Chairman Franck Riboud said there were not and had been no talks with PepsiCo.