20 Sep 2014

Fonterra and Danone resume arbitration

8:53 pm on 20 September 2014

Fonterra and the French company Danone are back in formal talks aimed at settling a disagreement over last year's botulism scare.

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Danone is appealing a ruling that prevented it from suing Fonterra in the High Court. Photo: AFP

Danone is seeking compensation from Fonterra because of reputational damage after it had to recall potentially contaminated baby formula and other products in markets around the world.

Fonterra said arbitration taking place in Singapore had resumed after stalling when the parties could not agree on who should chair the process.

The two parties will also be back in court in New Zealand in October.

Danone has been refused permission to sue Fonterra in the High Court but is appealing against that ruling at a hearing next month

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