Groupe Danone has stayed silent on a French report that it is looking to sell its LU biscuits business.

Speculation has swirled in France that Danone is ready to offload the business, which could fetch around EUR3.5bn (US$4.7bn).

A report in French magazine Challenges said the division could attract buyers including Kellogg Co. and Kraft.

A Danone spokesperson was tight-lipped on the subject: “We never comment on rumours that regularly appear in the press,” she said.

The market seemed to approve of the speculation with Danone shares up almost 2% as just-food went to press.