PepsiCo has confirmed that it is not planning to launch a takeover bid for French food group Danone.

The US drinks giant told French stock market regulator AMF yesterday that it was not about to launch a bid.

Senior AMF official Gérard Rameix had reportedly been pressing PepsiCo hard for several days to reveal its intentions.

PepsiCo’s revelation caused shares in Danone to drop 10% after bid speculation had sent its share price rocketing 27% over the past month.