Danone announces cash call

Danone said yesterday that it plans to raise about €3bn (£2.6bn) by selling shares to existing shareholders to reduce net debt and strengthen its capital structure. The French food group expects to launch the rights issue in the coming days, subject to internal and regulatory approvals. The company also reiterated its forecast for underlying earnings per share at constant exchange rates to rise 10 per cent this year, excluding the dilutive effect of the issue of new shares.