Clarins, the French family-controlled cosmetics maker, said on Wednesday that it was not for sale but did not rule out selling a minority stake in the business to a bigger competitor, such as PPR.

The statement prompted a drop in the value of the company’s shares, which were trading at €57.71 shortly before lunchtime, down 2 per cent down on Tuesday’s close and giving the group a market capitalisation of €2.4bn ($3.5bn).