Danone says the High Court shouldn't "close the door" on its legal action against Fonterra Group to await the outcome of an arbitration process that will at least a year to complete.
Danone, the parent company of infant formula maker Nutricia, has launched High Court proceedings in New Zealand against Fonterra Group and arbitration proceedings in Singapore against Fonterra Ltd "to bring all facts to light and to obtain compensation for the harm it has suffered" over a whey protein concentrate recall by New Zealand's biggest company.
The Paris-based company put the cost of Fonterra's recall at €350 million when it revealed its third-quarter results last year.
Danone wants compensation from Fonterra for losses from the botulism scare and the harm it says was caused to its reputation.
Fonterra is arguing today in the High Court at Auckland for the New Zealand proceedings to be stayed - effectively put on halt - while the arbitration process takes place.