Danone has once more become the centre of attention on the French stock exchange after further reports it was susceptible to a takeover from PepsiCo.

The French business monthly L'Expansion reported that the food and water group remained vulnerable to a takeover and PepsiCo was still interested in buying it.

As a result, shares in Danone rose around 3% during yesterday.

The speculation comes in the same week that it was reported that the French Government is set to issue a decree which would outlaw foreign takeovers of domestic companies in certain sectors. The move follows the outrage in the country over speculation that PepsiCo was looking to buy Danone.

The decree would allow the Government to prohibit takeovers from abroad of French companies in unspecified "strategic sectors" of the economy.