US drinks company Pepsico has told the French regulator AMF that it is not preparing a takeover of food company Danone, French newspaper Les Echos said in its edition to be published on Monday, according to the Reuters news agency.

Les Echos said it had been told by AMF that PepsiCo had informed the market regulator that “it was not preparing any such operation at the moment.”

The paper said it had received the information on Sunday evening from AMF. It also said there could soon be a full inquiry into Danone’s recent share movements.

The possibility of Danone, the maker of yogurts, Evian mineral waters and Tiger and LU brand biscuits, being the subject of a takeover from a US firm has prompted politicians to issue a string of warnings against any such move.