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Shelly Banjo

The Food-Deal Frenzy's Dark Side

Industry stock prices have come unglued from fundamentals.

Stock prices for food and beverage companies are about to get frothier -- and that's not necessarily a good thing. 

French yogurt maker Danone's $12.5 billion deal to buy WhiteWave -- a 19 percent premium to the U.S. organic food company's pre-announcement price -- feeds the market's growing belief that big food companies will pay up to buy growth that comes from organic and natural foods, as sales dry up in their legacy snack and soda businesses.