Danone is set to fend off Unilever's hostile overtures, according to press reports. The French financial bi-monthly Challenges claims that the French group considers a Unilever hostile takeover bid to be more likely than a bid from Coca-Cola Co.

Challenges quoted a banker close to the situation as saying they believe that Danone is ripe for takeover thanks to its strong position in a sector going through consolidation, its restructuring efforts that are underway, though not yet completed, and a dispersed shareholder base.