Companies submit first-round bids for Pfizer’s nutrition business, report suggests

According to people with knowledge of the matter, Nestle and Danone submitted first-round bids for Pfizer’s nutrition business. The drugmaker announced in July that it was evaluating options for the operation, as well as its animal health division.

A tax-free spinoff is still an option for the company the people said, but the sources noted in September that Pfizer had delayed sending out sale documents to examine whether that move would be better for investors. Sources previously suggested that the drugmaker may fetch as much as $10.5 billion for the business.

“The process of exploring strategic alternatives for Pfizer’s nutrition business is ongoing,” commented spokeswoman Joan Campion, adding that “we’re currently pursuing the activities associated with evaluating all options, including sale, spin-off or other transaction.” She added that the company expects to announce a decision this year.

Meanwhile, Abbott Laboratories confirmed earlier this week that it is not participating in the bidding process, despite reports suggesting that it was interested in the division. The drugmaker, which announced its own divestments in October, was still interested in bidding for the Pfizer unit then, according to one person familiar with the matter.