PepsiCo is not going to make a bid for the French food and drink group Danone, according to the French market regulator AMF.

An AMF spokesperson has been quoted across a number of French and international news sources today (25 July) saying: "PepsiCo have indicated to us that they are not planning a bid on Danone."

So far neither PepsiCo nor Danone has made a comment.

The share value of Danone crashed by more than €2 billion (US$2.4 billion) on the news in early trading today. The company's stock has been rising quickly over the last couple of weeks on the growing rumours that the US soft drinks and snack producer was planning a hostile takeover bid.