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| Wahaha claims Danone's appointment 'illegal' |
SHANGHAI, June 22 -- HANGZHOU Wahaha Group Co said the appointment of new chairman Emmanuel Faber for its ventures with Groupe Danone is illegal.
Wahaha's directors had clearly shown they didn't support the appointment of Faber earlier this month after Zong Qinghou resigned as chairman of the ventures, the China's biggest drinks maker said in a statement issued yesterday after a two-day board meeting, according to Bloomberg.
"It's illegal for Danone to appoint Faber as the temporary chairman," according to the e-mailed statement. "The Chinese directors hold that the chairman should be elected by the board in accordance with the company charter."
The Chinese drink maker's application to bring Danone to the Hangzhou Arbitration Commission was accepted on June 14. Wahaha asked the Paris-based company to terminate the agreement over the transfer of trademark and reiterate it has always owned the rights of the Wahaha name.
Danone earlier this month filed a US lawsuit seeking at least US$100 million in damages against companies linked to Wahaha's chairman Zong, accusing them of illicit fruit-juice and mineral-water sales.
Danone said it's losing US$25 million every month from unlawful sales of drinks under the Wahaha brand, according to documents filed in Los Angeles Superior Court.
Danone set up ventures under the Wahaha brand in 1996 with Zong, the 23rd richest person in China according to Forbes magazine. The French company's growth in the country has slowed since the dispute with Zong began last year. Hangzhou Wahaha Food & Beverage on June 6 called Danone "despicable and laughable" and said it expects the French company to leave China.
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