Mead Johnson Nutrition Jumps On Acquisition Rumors

Mead Johnson Nutrition Co MJN shares jumped 11 percent Friday on news that Danone SA has targeted the company for a takeover.

According to Reuters, "French food giant Danone, maker of Activia yogurt and Evian water, has decided it wants to pursue a takeover of U.S. infant formula maker."

The report indicates that Danone has completed substantial due diligence having finished an "internal strategic review and decided that Mead Johnson is its preferred acquisition."

Neither company has publicly commented as of mid-day Friday.

In related news, German healthcare group Fresenius and other buyout groups are exploring the acquisition Danone’s medical nutrition business, the proceeds of which may be approximately $6.38 billion and could be used to fund the Johnson Nutrition Group acquisition, according to Reuters.

Mead Johnson Nutrition Co recently traded at $102.17, up 11.9 percent.