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Danone to sue New Zealand's Fonterra over baby formula recall

Published on Jan 9, 2014 6:05 AM

PARIS (REUTERS) - French food group Danone said in a statement it will start legal action against New Zealand dairy exporter Fonterra following a false alert that sparked the recall of infant formula.

Danone said it is initiating proceedings in the New Zealand High Court, as well as arbitration proceedings in Singapore to obtain compensation for the harm it has suffered.

It is also terminating its existing supply contract with Fonterra and will make any further collaboration contingent on a commitment by its supplier to full transparency and compliance with Danone's food safety procedures.

In August, Fonterra said it had found a potentially fatal ingredient contained in a range of products sold by a number of multinational companies.

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