Nestle SA apparently has formally started the auction for its North American water brands, including Pure Life and Poland Spring, according to Reuters news service.

Quoting "four sources familiar with the matter," Reuters says the brands, which also include Deer Park, Ozarka, Ice Mountain, Zephyrhills and Arrowhead, could bring $3-5 billion, based on core earnings of around $600 million.

Nestle wants first-round bids by the end of October, according to one of the sources. Nestle announced in June its intentions to sell the commodity water brands but to retain higher-end, international and better performing water brands such as Perrier, S.Pellegrino and Acqua Panna.