Little progress in Wadia-Danone talks

The peace talks between Mumbai-based industrialist Nusli Wadia and Danone in London are moving at a snail's pace, with neither side willing to relent on any of the several issues, the thorniest of which is the French dairy products giant's investment in Bangalore-based bio-nutritional company, Avesthagen.

Sources say the differences between the two promoters of biscuit firm, Britannia, remain in place as Danone wants to invest in new dairy products in India outside its partnership with the Wadias.

The Wadias, on the other hand, want more management control over Britannia, in which both partners hold equal equity.

A Wadia group spokesperson did not comment on the issue, but insiders say hectic negotiations are on between the lawyers of both sides in London to arrive at a rapprochement.

Sources in Danone say that by filing complaints against it with the Union commerce ministry and in the courts, the atmosphere of the peace talks has been vitiated.

"Danone has joint venture partners all over the world and has experience in dealing with them. We would have liked all issues to be resolved," they said.

The conflict between the Wadias and Danone ignited as Britannia's board, chaired by Nusli Wadia, declined to share its financial performance with Danone.

The Indian company said it would release the information to Associated Biscuits International Holdings (ABIH), the 50:50 joint venture between the Wadias and Danone.