Bristol-Myers Squibb is quietly sounding out potential bidders for a possible sale of Mead Johnson, its baby formula business, which is valued at between $7bn and $9bn.

The US drugmaker has tentatively approached PepsiCo, Danone, Nestlé, Kraft and HJ Heinz to test the appetite for a formal auction of Mead Johnson, according to people close to the situation. They said BMS had also put out feelers to pharmaceutical companies which have nutritional divisions, including Johnson & Johnson, GlaxoSmithKline and Novartis.