New Zealand dairy exporter Fonterra (FSF.NZ) said on Monday it may face legal action from France's Danone (BN.PA) over the recall of infant formula containing a potentially contaminated Fonterra ingredient. In August, Fonterra said it had found a potentially fatal ingredient contained in a range of products sold by a number of multinational companies. After recalls were issued across nine countries including China and Malaysia, the food safety scare turned out to be a false alarm because the ingredient was found to contain a less harmful bacteria. Danone is seeking full compensation for what it says were 350 million euros ($476 million) in lost sales following the recall of its infant formula products in Asia and New Zealand.
via Business News - Yahoo Finance http://finance.yahoo.com/news/danone-may-legal-action-over-055459308.html
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