What is going on between Wahaha and Danone?

I reported a few days ago on my French blog "En direct d'Asie" (For viewers from China click here) that Danone and Wahaha might have found the way to settle their differences: "Solution en vue pour le conflit entre Danone et Wahaha? "

To summarize my French post for the non-English speakers, I explained the benefits for both parties to settle an agreement by listing the joint-venture Wahaha-Danone on the Shanghai Stock Exchange:

1/ Danone can get back the "illegal" branches of Wahaha established by Zong Qinghou without paying too much;
2/ Zong Qinghou and Danone can make a hell of money if the deal go through;
3/ Both parties can save face and bring back the Brand image of the company damaged by the feud;
4/ The listing may help both to leverage money in a fast growing market where competition from local and international companies like Mengniu start to be growing.

I thought this idea was quite clever.

But my hope of a deal was dashed today when I saw that Zong Qinghou rejected the proposal made by Danone. On the sidelines of the current annual session of the National People's Congress to whom Zong Qinghou is a member, he explained: "Danone wants to ensure at least 50 billion yuan (6.9 billion U.S. dollars) in market value if its shares in the new company are lower than 40 percent". [...] But those proposals and conditions are groundless, and we cannot possibly accept them".

Is it only simple rhetoric in order to get more from the deal or Zong Qinghou feel so confident he can win the legal case he has with? 

Definitely, Danone still has a big nail in the shoe.

Comments

[shopgirls shanghai]

wahaha sucks