Executives from Groupe Danone's LU biscuit unit will hold meetings with employee representatives tomorrow (3 July) as speculation about the future of the business grows.

A spokesperson for Danone's LU unit confirmed talks will take place but remained tight-lipped on the nature of the discussions. "Today, there are a lot of rumours in the press but I just can't comment now," she told just-food.

The future of Danone's biscuit operations has become a subject of feverish speculation with reports linking US giant Kraft Foods with the business.

A report in the Financial Times yesterday said Danone and Kraft were in talks on the business. Officials at Kraft could not be reached for comment as just-food went to press.

Danone saw sales from its biscuits and cereal business rise 3% last year, although its other divisions - dairy and beverages - grew faster.

Revenue reached some EUR2.4bn (US$3.3bn); group turnover for 2006 stood at EUR13bn.