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PARIS (Reuters) - French food group Danone (PA:DANO) will hold a board meeting this week to discuss whether to sell its medical nutrition business to a Fresenius (DE:FMEG)-led group or to Hospira (N:HSP) for more than 3 billion euros (2.4 billion pounds), Bloomberg reported on Wednesday.
While the Fresenius group is perceived to be the front runner to enter exclusive talks, Danone is expected to push for a higher offer, the report said, citing people familiar with the matter. There was however no guarantee of a deal and Danone board could decide to pull the sale, they said.
Danone could not be immediately reached for comment while Fresenius declined comment.
Reuters first reported in February that Danone was looking to sell its medical nutrition business, worth an estimated 4 to 5 billion euros.
But Fresenius was said last month to be considering pulling out of the bidding because of frustration with the slow progress of the process, sources told Reuters.
A sale of its medical nutrition business would help Danone, the world's leading yoghurt firm, focus on its main businesses of baby food, dairy and bottled water.
Danone could also use the proceeds from a sale to help fund a takeover of U.S. infant formula maker Mead Johnson Nutrition Group (N:MJN), which sources said in October it wanted to pursue.
(Reporting by Dominique Vidalon, Noelle Mennella, Additional reporting by Ludwig Burger in Frankfurt; Editing by Leila Abboud)