Danone shares rise after it prepares to sell Chinese dairy stake

China Mengniu Dairy

01/03/2021 08:03

PARIS, March 1 (Reuters) - Shares in Danone  DANO.PA  rose
1.9% on Monday after the French food group said it was taking a
first step toward selling its stake in its Chinese dairy partner
Mengniu Dairy Company Limited  2319.HK , and would use the gains
to buy back its own shares.
     "We see this as a further positive step in tidying up
Danone's non-core portfolio and a signal of serious intent on
the portfolio generally, consistent with recent announcements,"
wrote Jefferies analysts in a note.
    Danone, whose Chairman and Chief Executive Emmanuel Faber
has come under growing pressure as shareholders push for changes
at the group to improve its performance, is due to hold a board
meeting later in the day, said a source familiar with the
matter.  urn:newsml:reuters.com:*:nL2N2KY0DP
    

 (Reporting by Dominique Vidalon and Sarah White;
Editing by Sudip Kar-Gupta)
 ((dominique.vidalon@thomsonreuters.com; +33149495432; Reuters
Messaging: dominique.vidalon.reuters.com@reuters.net))