Shearman leads on €3bn Danone rights issue

Shearman & Sterling and Bredin Prat have taken lead roles on French dairy and water company Danone's €3bn (£2.6bn) rights issue.

The company, whose flagship products include Evian, Activia and Actimel, launched a public offering in France and Switzerland yesterday (1 June) accompanied by an international private placement in a bid to reduce its debt.

Shearman's Paris office advised Danone, led by corporate partner Bertrand Senechal and capital markets partner Robert Treuhold. Bredin Prat also advised Danone, led by capital markets and M&A partner Olivier Saba and M&A partner Benjamin Kanovitsch, who is the firm's relationship partner for Danone.

Bredin Prat is a regular adviser to Danone and has previously advised the company on deals including the 2007 sale of its biscuit business to Kraft Foods for €7.2bn (£6.2bn), when magic circle firm Clifford Chance advised Kraft.

Saba said: "We have been Danone's counsel for a long time and they are used to working with us. I believe they brought in two law firms to advise because this was a very large transaction."

Wall Street firm Cleary Gottlieb Steen & Hamilton also won a role on the deal, acting for the underwriters JP Morgan and Calyon. The US firm's team included Paris capital markets partner John Brinitzer, corporate finance partner Marie-Laurence Tibi and French tax partner Pascal Coudin.

Danone's in-house legal team was led by group general counsel Christiane Butte and the head of its corporate legal division Sebastien Peries.