LONDON/FRANKFURT France's Danone (DANO.PA) is weighing a sale of its tube feeding products unit which could fetch over 3 billion euros ($4.08 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 hypo allergenic baby food, could attract interest from peers such as Abbott (ABT.N), Nestle NESN.VX, Baxter (BAX.N) or Fresenius (FREG.DE), the people added.
JPMorgan (JPM.N) has been asked to find a buyer for the European market leader, which in 2012 posted sales of 1.3 billion euros and earnings before interest and taxes of 231 million euros.
Danone declined to comment.
(Additional reporting by Martinne Geller, Frank Siebelt, Ludwig Burger and Dominique Vidalon. Editing by Jane Merriman)