Calyon acted as the lead bank and associate bookrunner (together with JP Morgan) for Danone’s capital increase with the maintenance of preferential subscription rights. The transaction, announced on May 25, was launched on May 29, 2009. The total amount of EUR 3 billion represented a subscription parity of four new shares for 17 existing shares, with the new shares priced at EUR 24.73 per share.

Danone’s three main shareholders (Eurazeo, Predica and Sofina) took their share of the new capital for a total of 8% of the transaction.

This deal enables Danone to:

• Strengthen its financial structure, reduce its debt and improve its credit ratios.
• Increase its financial flexibility in order to support its organic growth strategy and finance small and medium-sized acquisitions.

The capital increase was a big success and was oversubscribed by 182%. Demand for the shares on offer amounted to EUR 5.5 billion.

This transaction was the largest capital increase in France by a corporate issuer since 2005 and the largest ever globally by a Food & Beverages company. It was also the first time in 30 years that Danone strengthened its capital and solicited its shareholders.

A Danone management road show, partly organised by CA Cheuvreux, was held in the different European financial markets. It allowed Danone managers to respond to investors’ questions about the capital increase’s timing and calibration.

Calyon won this mandate thanks to its close longstanding relationship with Danone and its experience in Equity Capital Markets. In 2008, Calyon took part in two bond issues for the company.