Wahaha-Danone wrangle drags on

Chinese beverage producer Wahaha Group and French food giant Danone Group SA have failed to reach an agreement in talks that are set to drag on for another month.

Hangzhou-based Wahaha rejected a plan put forward by Danone, Zong Qinghou, Wahaha's chairman and founder, said on Sunday night.

Danone proposed the two companies merge their businesses to form a new venture that will eventually list on the A-share market. The two companies would each take a 40 percent stake in the new venture, with the remaining 20 percent as public shares.