| Danone to launch public tender cash offer for some of its bonds |
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16/11/2009 17:52 (4 Day 14:05 minutes ago) | |||||
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The FINANCIAL -- French food group Danone launches a public offer to buy some of its bonds. The move is expected to cut interest charges and lower debt.
The tender offer starts on Nov. 16 and will end on Nov. 24, Reuters reported. "The proposed transaction will enable Danone to reduce its gross debt, optimise its debt structure and lower its average cost of debt from 2010 onwards," the group said in a statement. Danone has mandated BNP Paribas (BNPP.PA) and Societe Generale to manage the deal.
As of June 30, Danone had about euro7 billion in net debt, according to Business Week. Servicing this debt cost euro170 million in the first half of 2009, the company said.
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