Danone reportedly courted by Nestle, Fresenius for medical nutrition unit

Danone is reportedly being courted by Swiss food giant Nestle and German healthcare group Fresenius as it explores the possibility of selling its medical nutrition unit.

They are among four potential buyers that have shown interest in the business, which manufactures feeding tubes and other products, French newspaper Les Echos reported on Thursday (March 20th).

However, a source familiar with the French yoghurt maker's plans told the Wall Street Journal "several firms" had expressed an interest in the business, but Danone had yet to make a decision on whether or not to "proceed with a sale or partial sale".

According to Fintan Ryan of Berenberg Equity Research, the medical nutrition unit could fetch between three and 4.5 billion euros (3.8 billion pounds) should Danone sell.

It entered the medical nutrition market in 2007 on acquiring Numico, a Dutch maker of baby food and other products, for 12.3 billion euros.

However, it has never expanded the business, which Mr Ryan argued "doesn't really fit in with the rest" of Danone's interests.