Center

Workers rally behind Wahaha

By Wang Zhenghua (China Daily)
Updated: 2007-06-13 08:25

Faber said Danone has no intention of taking further legal measures against the "unauthorized" businesses started by Zong, and it is convening board meetings with directors newly appointed by Wahaha after Zong's departure.

A channel remains open between Zong and Danone to address the dispute peacefully, Faber said. He spiked rumors that a third party has been involved in their search for a solution.

Related readings:  Interim chairman of Wahaha remains absent  Catering: Interim chairman of Danone's JV remains absent  Chinese drinks giant brands Danone 'despicable' over lawsuit  The Chinese beverage company's expansion is no laughing matter Groupe Danone takes firms to court in US  Danone turns up the heat against Wahaha

Fuel was added to the fire after the Paris-based company filed a lawsuit last Monday in the US over alleged illegal sales in China by companies run by Zong's wife and daughter.

Zong resigned shortly after, and in an open letter he said two of the joint ventures' French board members - including Faber - had "insulted and framed" him during the 10-year partnership. He also alleges the French company poached employees from the joint ventures.

Faber fought back yesterday: "If you know Zong, it's hard to believe that he can be trapped, bullied or framed by whatever European wise guys."

He added that neither he nor other Danone managers ever gave instructions to hire or seek to hire employees from the joint ventures.

Open letters are circulating online claiming to represent all Wahaha employees and opposing the alleged hostile takeover. Faber questioned the letters' authenticity yesterday.

"The content of these letters does not indicate why these employees are worried," he said. "Their styles look like they are being written by one person."

The feud between Danone and Wahaha surfaced five months ago, when Zong publicly rejected a plan by Danone to buy out Wahaha's remaining assets beyond joint ventures for 4 billion yuan, accusing the French company of attempting a hostile takeover.