French dairy group Danone said today (16 November) it will launch a public offer to buy some of its bonds, in a bid to reduce its debt and lower its costs.

The tender offer will end on 24 November unless modified by Danone.

"The proposed transaction will enable Danone to reduce its gross debt, optimise its debt structure and lower its average cost of debt from 2010 onwards," the company said.

Danone has invited noteholders to offer to sell for cash, up to a maximum aggregate principal amount of EUR1.25bn (US$1.87bn).

Danone has mandated BNP Paribas and Société Générale Corporate & Investment Banking as dealer managers. Société Générale Securities Services will act as tender agent for the tender offer.