Shares in French food company Danone surged nearly 5 per cent today on renewed talk it might be the subject of a takeover.
There is speculation that US food group Kraft or soft drinks firm Pepsico may bid for the food group.
A Danone spokeswoman said the company had "no comment because there was nothing new to report". But the stock led gainers on the Paris bourse.
It was up 3.75 per cent at €94, beating a 1 per cent rise on the DJ Stoxx food and beverage sector index - which Danone has outperformed by 13 per cent this year.
The stock climbed as some investors interpreted comments by French Industry Minister Francois Loos as a sign that France was dropping its efforts to shield the maker of Evian mineral water and Danone yoghurts from a hostile bid.
Asked by French radio RTL whether Danone could be taken over, Mr Loos said: "It is up to Danone and its management to see what kind of capital structure they need to face this situation."
