Danone of France builds up defenses to a takeover

French food and beverage manufacturer Danone S.A. is hoping to fend off a potential bid from U.S.-based PepsiCo Inc. It is thought that such a bid would face opposition from the French government as well as Danone's management. An additional obstacle facing PepsiCo is said to be Danone's bylaw requiring that any company or individual wishing to control more than 12% of its voting rights, must be in possession of at least 66% of Danone shares.