India's Godrej Consumer Products Ltd. (532424.BY) hasn't called
off its joint venture with U.S.-based Hershey Co. (HSY), Reuters
cited a Godrej executive as saying Wednesday, denying an Indian
newspaper report.
The Economic Times reported earlier Wednesday that Godrej and
Hershey agreed at a recent board meeting to call off their joint
venture in India following management differences in running the
entity. The report said Hershey would sell its 51% stake in the
venture to Godrej for an undisclosed sum.
Godrej shares closed up nearly 2% on the news.
A. Mahendran, the company's managing director, denied the
report, telling Reuters: "The JV is continuing. There is no doubt
about that."
A Godrej-Hershey spokeswoman in India and a Hershey spokesman in
the U.S. said they don't comment on market speculation.
The joint venture dates back to 2007, when Hershey bought 51% in
Godrej Beverages and Food, giving it a foothold in the fast-growing
Indian market.
Full story at
http://www.reuters.com/article/2011/07/06/hershey-godrej-idUSN1E7650OK20110706
-Dow Jones Newswires; 212-416-2900