Danone weighing sale of $2 billion Yakult stake - Bloomberg

LONDON (Reuters) - Danone (DANO.PA), the world's largest yogurt maker, is weighing a sale of its 20 percent stake in Japan's Yakult Honsha , worth about $2 billion (1.26 billion pounds), Bloomberg reported on Wednesday.

Officials for France's Danone and Yakult were not immediately available to comment on the report, which cited sources familiar with the matter.

Danone has held internal discussions about a possible sale, the report said, adding that deliberations were at an early stage and no final decision has been made.

Danone and Yakult, which makes fermented milk drinks, scrapped a nine-year alliance last year, replacing it with a looser cooperation framework. The move dampened speculation that Danone might seek to buy out the Japanese company.

A sale of the Yakult stake could help Danone raise cash for acquisitions as the company seeks to diversify away from slow-growth Europe and shore up its sagging earnings.

Reuters reported last month that following an internal strategic review, Danone had decided on U.S. baby formula maker Mead Johnson Nutrition (MJN.N) as its preferred acquisition, citing people familiar with the matter.

Bloomberg said on Wednesday that Danone's management had discussed possible targets, including Mead Johnson, at a board meeting last month.

(Reporting by Martinne Geller; editing by Louise Heavens and David Clarke)