Pfizer has insisted claims it has allowed Mead Johnson and Danone to table a joint bid for its infant nutrition business is "speculation" and said no decision has been made over the future of the division.

The US pharmaceutical giant told just-food that a Reuters report that claimed Mead Johnson and Danone were set to battle with Nestle for the infant nutrition unit was "based on a source's speculation".

A spokesperson for Pfizer said the company was still "exploring the strategic alternatives" for its infant nutrition business.

"We're continuing to pursue the activities associated with evaluating all options, including sale, spin-off or other transaction. However, no decisions have been made at this point," the spokesperson said. "We continue to be in a  position to announce any decision in 2012, and continue to expect to complete any transactions that may result from this decision between July 2012 and July 2013."

Pfizer's infant nutrition business generated revenues of around $1.9bn in 2010. It sells products including infant formulas and growing-up milks in over 60 countries. It operates from five plants in Ireland, China, Singapore, the Philippines and Mexico.