Danone Said in Talks With Hospira on Medical Unit

REPLAY VIDEO
Your next video will start in
Pause

Recommended Videos

  • Info

  • Comments

  • VIDEO TEXT

July 28 (Bloomberg) -- Bloomberg’s Caroline Connan reports that Danone is said to be in talks to sell off its medical nutrition unit to Hospira. She speaks on “The Pulse.”

That is right.

The u.s. company has been in talks with several weeks.

The discussions are still ongoing.

The cash and stock components of the deal.

We do not know if this will come through.

Their are some divestment to get some cash.

The price of milk has increased 18% in the first half.

That is affecting revenue and the prices and their margins.

This medical nutrition unit could bring in more than 3 billion euros.

The big question is how do they invest the money.

That is right.

If you look at earnings from last week, they missed estimates and the volume is down.

Sales have declined by 20%. of course they do need the cash.

They will make acquisitions.

They need to make acquisitions in order to boost revenue and boost growth.

Maybe some acquisition in the baby food business.

They need to compete with the big rival which is nestle.

Why did you decide to divest this unit?

It was not doing that badly.

Last year, they made 1.3 billion euros.

We have all the angles covered.

We are taking a break.

We're going to tel aviv to find out how business and israel is coping with the conflict in ?

This text has been automatically generated. It may not be 100% accurate.

Advertisement

BTV Channel Finder

Channel_finder_loader

ZIP is required for U.S. locations

Bloomberg Television in   change