:. Food Industry News

Categories: Mergers and Acquisitions

Dutch Market Regulator: Danone Holds 26.4% of Numico Shares (DJ)

Source: Dow Jones Newswires
11/07/2007

Amsterdam, Jul. 11 - French food company Groupe Danone held a stake of 26.4% in its Dutch peer Koninklijke Numico NV on Tuesday July 10, according to documents filed with Dutch market regulator AFM.

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Danone's stake also represents 26.4% of the voting rights in Numico.

Danone said Monday it wants to launch a friendly bid for Numico of EUR55 per share of the Dutch company.

The Dutch regulator confirmed Tuesday it is to investigate trade in shares of Royal Numico NV.

On Monday at around 1000 GMT, trade in Numico shares was suspended after the stock rose 11% to EUR44.50 and trade volumes were exceptionally high. After the stock market closed Monday, Danone revealed that it plans to launch bid for Numico.

Both Danone and the Dutch market regulator AFM weren't immediately available to comment.

Investor Relations director Robin Jansen from Numico said Wednesday he had "heard back from the market today" that Danone had started buying Numico shares on Tuesday after the stock restarted trading.

Shares in Numico are trading 0.3% higher on Wednesday at EUR53.85 at around O747 GMT.

"We have noticed an exceptional pattern in trade of Numico shares which leads the AFM to launch an investigation into possible insider trading activities," AFM spokeswoman Alice Jentink had said Tuesday.

She declined to elaborate further on the investigation but said the regulator aims to conclude the probe as soon as possible.

Without quoting sources, French daily Le Figaro reported Wednesday, that Danone bought 10% to 20% of Numico's shares Tuesday on the Amsterdam Stock Exchange.

Numico Chief Executive Jan Bennink told reporters in Paris Tuesday that he is confident "nothing irregular" took place in the trading in Numico shares ahead of Danone's announcement that it would buy the company.

Bennink said it was Numico that requested that Dutch market authority AFM suspend trading in its shares ahead of the announcement, adding that "all actions were in line with legislation."



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