Nestle ‘making bid for Pfizer baby formula unit’

Nestle is among the companies that could be involved in the bidding for Pfizer's baby formula business unit, according to a report.

Unnamed industry sources with knowledge of the matter have told Bloomberg that the consumer products company has made a first-round bid for the asset, as has Danone.

Nestle is thought to have greater resources in terms of cash, cash equivalents and short-term investments than Danone, which would position it well to win any potential race to acquire the infant nutrition business.

Pfizer is currently weighing up whether to sell off or spin out the business unit, as it looks to increase its focus on its core pharmaceutical operations and dedicate more resources to drug development.

Neither Nestle nor Danone commented on the report, while Pfizer's Joan Campion said: "The process of exploring strategic alternatives for Pfizer's nutrition business is ongoing."

According to Nestle's most recent financial report in October 2011, the company experienced organic sales growth of 7.3 percent in the first nine months of last year.