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Mead Johnson Climbs; Danone Could Use Cash to Buy: Credit Suisse 2014-03-26 15:40:32.203 GMT
By Joshua Fineman March 26 (Bloomberg) -- Mead Johnson up as much as 2.1%, most intraday since Feb. 20, to highest since March 11. * Danone could use cash it gets from potential sale of medical nutrition unit to buy MJN; Danone would likely have to pay >EUR15b for MJN; deal may require equity funding unless Danone gets partner for US business: Credit Suisse analyst Alex Molloy in note earlier (underperform, PT EU46, Bloomberg avg. EU54) * Purchase of MJN would allow Danone to challenge Nestle as “global leader” in infant nutrition; Danone may need MJN to help recover position in China after recall * Without partner or equity issuance, MJN is “financial stretch” for Danone * NOTE: Feb. 19, Reuters reported Fresenius may bid on Danone Nutrition in $5b deal * NOTE: Sept. 2009, Danone denies FT report it’s considering MJN bid
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To contact the reporter on this story: Joshua Fineman in New York at +1-212-617-8953 or jfineman@bloomberg.net To contact the editor responsible for this story: Brad Skillman at +1-212-617-2763 or bskillman1@bloomberg.net