The Wadia Group has written to American company Kraft Foods, warning that if the latter acquires Danone's stake in Britannia, it will have to inherit all the liabilities and disputes of the French company in India. This is seen as an attempt by the Wadias to discourage Kraft from entering Britannia.
The Wadia Group's warning has international ramifications as well. Britannia and Danone are engaged in a global fight over the Tiger trademark--Britannia's indigenously-developed biscuit brand.
The Wadias have claimed that Danone surreptitiously registered it as its own in 70-odd countries. "Even if Kraft doesn't buy into Britannia, it will have to deal with the Tiger dispute as Danone has registered it in many countries that are a part of the global buyout deal,'' a source said.
In any case, Kraft will be aware of all the ramifications of the deal, said a source close to the company. The Wadia Group spokesperson, however, declined comment.
Two months ago, Danone agreed to sell its global biscuit and cereals business to Kraft Foods. Even though the buyout agreement did not include Danone's business in India (Britannia) and Latin America, Danone officials, while announcing the deal, had said they are in talks with the Wadia Group, its equal partner in Britannia, and once all issues are sorted out, they will see if there is "any scope for Kraft in Britannia".
It said the French company took Tiger to 72 countries without its (Wadias) knowledge, and in some countries like Indonesia, the brand is fairly well established.
The Wadia Group's warning has international ramifications as well. Britannia and Danone are engaged in a global fight over the Tiger trademark--Britannia's indigenously-developed biscuit brand.
The Wadias have claimed that Danone surreptitiously registered it as its own in 70-odd countries. "Even if Kraft doesn't buy into Britannia, it will have to deal with the Tiger dispute as Danone has registered it in many countries that are a part of the global buyout deal,'' a source said.
In any case, Kraft will be aware of all the ramifications of the deal, said a source close to the company. The Wadia Group spokesperson, however, declined comment.
Two months ago, Danone agreed to sell its global biscuit and cereals business to Kraft Foods. Even though the buyout agreement did not include Danone's business in India (Britannia) and Latin America, Danone officials, while announcing the deal, had said they are in talks with the Wadia Group, its equal partner in Britannia, and once all issues are sorted out, they will see if there is "any scope for Kraft in Britannia".
It said the French company took Tiger to 72 countries without its (Wadias) knowledge, and in some countries like Indonesia, the brand is fairly well established.
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