:. Food Industry News

Categories: Mergers and Acquisitions

China's Taizinai Denies Report of Talks with Nestle

Source: Reuters
06/07/2009

Hong Kong, July 3 - Hunan Taizinai Group, a top dairy products maker in China, on Friday denied a Chinese media report that it was in talks to sell assets to the world's biggest food group Nestle AG .

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Chinese media had reported that Nestle was sending a delegation to hold talks with Taizinai and would access the books of the Hunan-based dairy products maker.

"I didn't hear anything about that," said Wen Dibo, the local government administrator managing the case of the financially trouble enterprise, when asked if Nestle was going to buy a stake in Taizinai, whose investors have included Goldman Sachs , Morgan Stanley and Actis Capital.

"As the managing director of the company, there is no way I wouldn't know anything like this," he said by phone.

When asked if a delegation of foreign firms was paying a visit to assess the firm's production facilities, Wen said the company did arrange some visit with foreign firms including Nestle but solely for the purpose of raising its management standards.

A Nestle spokesman in China declined to comment.




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