Neverfail, the Australian home and office water company is talking to two European parties about a possible counter bid to Coca-Cola Amatil's takeover attempt, according to reports in the Antipodean press today.

The names mentioned were Nestle and Danone.

In a report in The Australian yesterday, Neverfail deputy chairman John Fox said that while there was no counter offer ready yet, he "hoped to be able to deliver on that soon".

He added that the parties Neverfail was taking to were not keen on a bidding war with Coca-Cola.

An announcement from Neverfail is now expected within a week.