Tough tussle

New Delhi, Sept. 2: Britannia chairman Nusli Wadia and his Groupe Danone counterpart Franck Riboud will try to settle a brand-name dispute at a meeting in Europe this week.

The Wadias and Danone are equal partners in Associated Biscuits International that holds 51 per cent in Britannia, and the duo have locked horns over the Tiger brand.

Differences arose when the Wadias alleged that the French company had infringed its intellectual property rights by registering the brand in 70 countries.

Sources said the meeting would take place either in London or in Paris.

Britannia, however, is keeping the details of the meeting under wraps. A spokesperson for the company refused to comment.

Another issue to be taken up at the meeting relates to Danone’s acquisition of a stake in Bangalore-based nutritional foods company, Avesthagen.

The French company needs a no-objection certificate from Britannia for the stake buy.

Danone is reworking its plans for India, with a foray into the health food market. The company entered the domestic probiotic foods segment through a tieup with Japanese firm Yakult.

The two sides will also discuss the possibility of the Wadias buying out Danone’s 25 per cent stake in Britannia.

Sources said the agreement for Associated Biscuits International, signed in 1992, gave the first right of refusal to each partner, if the other wished to sell its holding.

Hence, the Wadias are expected to put pressure on Danone to sell cheap. On the other hand, Danone had earlier said it would sell only at a price of its choice.

Danone had said if the Wadias were not ready to pay that price, it would consider selling it to a third party.

Meanwhile, the Wadias are raising their stake in Bombay Dyeing through an issue of preferential warrants.

The board of Bombay Dyeing has approved a proposal to issue 19.30 lakh warrants to promoters.

The warrants will be converted into shares within 18 months of the float.

Promoters hold around 43 per cent in Bombay Dyeing.