LONDON (Nov 27): Yakult Honsha Corp fell the most in 19 months in Tokyo trading after France's Danone was said to consider selling its 20 percent stake in the Japanese dairy-drink producer.

Yakult plunged as much as 10 percent, the biggest intraday drop since April 2013, to 6,010 yen and traded at 6,140 yen as of 9:20am.

Paris-based Danone, the world’s largest yogurt maker, has held internal discussions about a possible disposal, people familiar with the matter said, asking not to be named because the details aren’t public.

The deliberations are at an early stage and no final decision has been made, they said.

The market value of Tokyo-based Yakult is about 1.1 trillion yen (US$9.3 billion), making the stake worth about US$1.9 billion.

A sale would end the French company’s 10-year-old agreement with Yakult, whose probiotic and fermented milk drinks are similar to offerings from Danone.

It could also raise cash for potential acquisitions by Danone, which is seeking growth after reporting its first annual profit decline in more than a decade last year.

Danone’s management discussed possible targets including US baby-food maker Mead Johnson Nutrition Co, which is valued at US$20.5 billion, at a board meeting last month, a person with knowledge of the matter has said.

Atsushi Sasaki, a spokesman for Yakult, declined to comment. Representatives for Danone also declined to comment.

Danone, the maker of Activia yogurt and Evian water, had previously sought to increase its holding in Yakult, but the Japanese company opposed such a move.

Danone hasn’t boosted its shareholding in Yakult, despite a renewal of the pact last year that removed a limit on the size of its stake.

Danone is also discussing a sale of its medical-nutrition business with potential suitors, including Fresenius SE and several buyout firms, people with knowledge of the process said.