Fonterra seeks strong farmer mandate for sale
Fonterra chair Peter McBride expects a strong mandate from farmers shareholders for the proposed sale of its consumer and related businesses to Lactalis for $3.8 billion.
The $11 million set aside in the Danone law suit is what it views as its legal obligation in the contract, Paravicini said today at the release of its half-year result.
"We are very confident with our legal position and we will defend that position vigorously and at this stage we do not see the need for any further provisions under the legal contractual obligation."
Danone has previously indicated lost sales from precautionary food safety recall of whey protein concentrate supplied by Fonterra cost the company at least $500 million.
Chief executive Theo Spierings said today Fonterra would be happy to have Danone back as a customer.
"Danone is a very key customer, it is very unfortunate we went through the 'event'. There's two parties involved here – two parties with different opinions."
He says they would be open to a commercial discussion with Danone at all times. "But there is a legal situation ... so we are not going to talk about it here right now," he told a press conference at the Auckland's head office.
But on the commercial side they have an approach of "an open line like any customer", he said.
