Exclusive: Danone considers sale of tube feeding products arm – sources

By Sophie Sassard, Arno Schuetze and Anjuli Davies LONDON/FRANKFURT (Reuters) – France's Danone is weighing a sale of its tube feeding products unit which could fetch over 3 billion euros ($4.10 billion) as it expands its dairy business in higher-growth emerging markets, three people familiar with the deal said. The Medical Nutrition business, which also makes products like hypoallergenic baby food, could attract interest from peers such as Abbott , Nestle , Baxter or Fresenius , the people added. Danone inherited the business with its 2007 purchase of Dutch baby food maker Numico, so a potential sale is not surprising, said Kevin Dreyer, associate portfolio manager at Gabelli Funds, a Danone shareholder. "Even though Danone might have said publicly that they love this business too after the Numico deal, at recent investor events it gets barely a mention relative to the other businesses," Dreyer said.