UK's Reckitt rises after report says Danone eyeing Mead Johnson unit

Shares of British consumer goods maker Reckitt Benckiser RKT.L up 3.3% at 5,330 pence

Blue-chip FTSE 100 index .FTSE gains 2.3% as Middle East ceasefire sparks market rally

French political-business newsletter La Lettre reports that Danone DANO.PA is weighing potential acquisition of Reckitt's Mead Johnson infant formula unit

Danone declined to comment on the report when contacted by Reuters

DANO down 0.26%

Reckitt spokesperson said it is continuing to assess all strategic options for the business and did not provide further details

Berenberg analyst Fulvio Cazzol told Reuters they "certainly wouldn't rule out a potential acquisition for Danone"

Cazzol said Mead Johnson could be valued at potentially 5.3 billion pounds ($7.11 billion) in a deal, and that the unit would give Danone a greater foothold in the U.S.

RKT has fallen ~14% so far this year, while FTSE has risen ~6%

($1 = 0.7452 pounds)