Kraft Foods has offered €5.3 billion in cash to acquire the biscuit division of French food company Groupe Danone.
Danone said that its board is considering the bid on an exclusive basis. Kraft made the offer to buy the biscuits and cereal division yesterday.
The sale would allow Danone to concentrate on its dairy products and water divisions, Danone Chief Executive Franck Riboud said.
"The offer of Kraft Foods represents a strong strategic and industrial opportunity for the biscuits and cereal products business," Danone said.
Shares in Danone rose 4.2 per cent to €63.48 in trading that resumed after a brief suspension today.
Under French law, Kraft said in a statement, Danone must consult with its Works Council before entering into a definitive agreement.
The deal could be concluded in the last quarter of 2007 and is subject to regulator approval, Danone added.
AP
