Quaker Oats is reported to be in discussion both with Coca-Cola and French foods giant Danone over a potential takeover.

Coca Cola is believed to have out-muscled its Gallic rival with a stock-swap offer of $116.70 per share, an overall valuation of around $16 billion. Quaker rejected an offer of $14.8bn from Pepsi two weeks ago.

Coke and Pepsi have been attracted to Quaker by its Gatorade brand, the leading non-carbonated soft drink making up 84% of the sports beverages market.

However, the deal is far from done, as the two sides yet to agree financial terms. Some members of Coke’s board are also believed to be opposed to a takeover with possible antitrust implications which would drag the company into the food business.

News source: Wall Street Journal