Bloomberg reports that the New Zealand-based Fonterra may opt out of its involvement with the scandal ridden Sanlu by selling its stake to a third party.
Fonterra Cooperative Group Ltd. may sell its stake in a Chinese dairy venture at the center of the milk scandal that killed four babies and sickened 53,000 children.
Fonterra, the world’s biggest dairy exporter, said talks are under way on a third-party acquisition of Sanlu Group Co. The Auckland, New Zealand-based group owns 43 percent of Sanlu, which was the first of 22 companies in China identified as producers of contaminated baby-milk powder.
“Discussions are continuing around a number of facets of Sanlu’s future,” Fonterra Chief Executive Officer Andrew Ferrier said in a statement. These include the possibility of Sanlu being acquired by a third party.”
