Beverages News
- Wahaha to sue Danone for 5b euros
Date: 27-Jun-2007 Sources: (Shenzhen Daily)
CHINA'S largest drink maker Wahaha Group confirmed yesterday it intends to sue its French partner Groupe Danone for up to five billion euros (US$6.7 billion) for conducting illegal business.
'We will countersue Danone, asking for 2 to 5 billion euros in damages,'the company said.
'We have reliable evidence of their violations and will pursue their illegal activities according to the law,'read the statement first issued Monday.
It did not specify where or when Hangzhou-based Wahaha would sue the French firm it has partnered since 1996, but company spokesman Shan Qining yesterday acknowledged the plan, declining further comment.
Danone and Wahaha are in the midst of bitter feud, in which the French firm has alleged the Chinese drinks giant set up 20 independent companies selling products identical to those sold by the joint ventures.
Danone, which owns a 51 percent stake in 39 joint ventures with Wahaha, has demanded a 51 percent stake in the non-joint venture companies, which Wahaha Group's chairman Zong Qinghou has rejected.
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