Nestle, Danone said to submit offers for Pfizer Baby-Food unit

Nestle SA and Danone made first- round bids for Pfizer’s baby-formula unit. This has put two of Europe’s largest food companies in competition for the division.

Nestle had $8.3 billion in cash, cash equivalents and short-term investments as of June, more than twice as much as Danone’s $3 billion. The infant-nutrition business has revenues that approached $2 billion in 2010. The sale of the unit would allow Pfizer to concentrate on medical products.

“The process of exploring strategic alternatives for Pfizer’s nutrition business is ongoing,” said Joan Campion, a spokeswoman for Pfizer. “We’re currently pursuing the activities associated with evaluating all options, including sale, spin-off or other transaction.” The decision is expected to be announced this year, she said.