Fresenius SE, Permira Interested In Acquiring Danone's Medical Unit

German based health care group Fresenius SE and European buyout firm Permira have made a joint bid to acquire Danone's (OTC: DANOY) medical nutrition business for as much as 4.5 billion euro.

The Wall Street Journal reported Wednesday afternoon that Danone will entertain other offers to acquire the unit as other private equity groups have expressed interest.

Danone has been seeking acquirers for its medical nutrition business since March but talks have failed due to disagreements over price and antitrust issues. Nestle (OTC: NSRGY) has previously shown interest in acquiring the division, along Hospira.

The company is interested in selling its unit and use the proceeds to finance activities to boost its presence in other business segments such as baby milk or fresh dairy.

Danone is in the middle of a new corporate strategy code-named Danone 2020 aimed at reversing slumping sales in its key segments. The company's medical nutrition business represents around 6 percent of total sales and despite healthy margins it isn't considered part of the company's core assets.