Beverages News
- Wahaha resists new chairman from Danone
Date: 25-Jun-2007 Sources: (Shenzhen Daily)
THE country's largest drink maker Wahaha said Thursday the appointment of a new chief to its disintegrating joint venture with French food giant Danone was illegal.
Danone appointed Emmanuel Faber to replace Zong Qinghou, the president of Wahaha Group, as chairman for the joint venture earlier this month, amid a bitter dispute between two parties.
It said in a statement released to the press following a two-day board meeting that Faber's appointment was in violation of the corporate charter and that Wahaha staff did not want to work with him.
'The Chinese directors hold that the chairman should be elected by the board in accordance with the company charter... ,'it said.
'The Chinese directors said explicitly that they do not trust Faber... and the vicious attack on Mr. Zong has triggered enormous anger among the whole staff, who reject Danone and reject Emmanuel Faber.'
Danone, which owns 51 percent stakes in 39 joint ventures with Wahaha, has accused the Chinese drinks giants of setting up 20 independent companies and selling products identical to those sold by the joint ventures.
The French food giant is demanding a 51 percent stake in the non-joint venture companies, which Wahaha Group's chairman Zong Qinghou has rejected.
The matter is the subject of a U.S. lawsuit as well as arbitration in Sweden and China.
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