French food manufacturer Danone is reported to be holding exclusive talks with UK fund BC Partners about the sale of Danone’s Italian grocery distributor Galbani.
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According to Italian daily Il Sole 24 Ore, the talks with BC Partners come after exclusive negotiations with Italian dairy giant Parmalat failed to result in a deal. However, talks with Parmalat are ongoing although the agreed period of exclusivity has lapsed. “I think (Danone’s talks with parties other than Parmalat) are further ahead,” a Parmalat spokesman said.
The Italian newspaper reported that Parmalat had proposed to pay €1.1bn (US$961.9m) for Galbani, while Danone is asking for €1.55bn. It is thought likely that the high asking price will derail talks between Danone and the UK company.
