PARIS - French dairy group Danone said on Monday it will launch a public offer to buy some of its bonds, in a move to simplify its debt structure and lower its cost.

The tender offer starts on Nov. 16 and will end on Nov. 24.

The proposed transaction will enable Danone to reduce its gross debt, optimise its debt structure and lower its average cost of debt from 2010 onwards, the group said in a statement.

Danone has mandated BNP Paribas and Societe Generale to manage the deal.

Shares in Danone gained 0.54 percent in early trade on Monday, underperforming France's benchmark CAC 40 .FCHI which was up 0.71 percent.

(Reporting by Michel Rose; Editing by Hans Peters)

Investment BNP Paribas