Europe's largest dairy group Lactalis said it had offered to buy all of French yoghurt maker Yoplait with a view to create a world dairy giant.
Lactalis did not put a price tag on its offer, but a source close to the matter told Reuters the offer valued Yoplait at around €1.3 billion, or over 10 times its operating profit.
The Lactalis offer would however be below the €1.5 billion pricetag Yoplait chief executive Lucien Fa put on Yoplait last week when interviewed by Reuters.
"The Lactalis offer, the sole French offer, would give birth to a big French dairy sector champion worldwide and would keep the Yoplait brand within the national patrimony," the statement said.
Unlisted Yoplait has been in the spotlight since the summer when private equity fund PAI Partners said it wanted to sell its 50 percent stake in the company.
The sale process, which started this month, could also draw interest from food giants such as Nestle, General Mills, which distributes the Yoplait brand in the United states, Asian food groups and private equity groups.
The sale process was officially launched a few days ago, another source close to the matter told Reuters today.
The second Yoplait stakeholder, France's largest milk cooperative Sodiaal, reiterated Wednesday it would not sell its 50 per cent stake.
PAI Partners declined to comment on the Lactalis bid.
Set up in 1964, Yoplait has grown to become the world's second-largest dairy products maker after French rival Danone with global sales of €4.5 billion by operating internationally through a franchise network.
Unlisted Lactalis - which controls the President, Lactel, or Galbani brands - had 2009 revenue of €8.5 billion, of which over 40 per cent came from France.
Reuters