Danone has denied speculation that it is in talks with US baby formula maker Mead Johnson Nutrition over a possible takeover.

It was reported yesterday (29 September) that Danone had brought in investment bank Lazard to work on a possible bid for Mead Johnson Nutrition, said to be worth around US$12bn, which would create the world's largest producer of baby milk formula.

"In response to market rumours reported by the media and on Mead Johnson, Danone wishes to clarify the following: there is currently no discussion between Danone and Mead Johnson. Nor has Danone committed any advisor or bank to advise on this subject," the French food and bottled waters group said.