Danone China head faces tax probe - state media

SHANGHAI, July 24 (Reuters) - Shanghai's tax bureau will investigate Groupe Danone SA's (DANO.PA) China chief executive for suspected tax evasion, a bureau official said on Thursday, adding to a series of tax probes and lawsuits embroiling the French food giant and its estranged Chinese partner Wahaha.

The official Shanghai Securities News reported on Thursday, citing unnamed sources, that the tax bureau had already started a probe against Qin Peng, who had received more than 60 million yuan ($8.8 million) in remuneration from Danone since 1996.

"Yes, we have received information with accusations against the Danone executive, and we will investigate it," said an official at the investigations department of the Shanghai tax bureau, although she declined to comment further on the case.

Danone spokesman Michael Chu said he was not aware of the investigation but added that the accusations were groundless.

Hangzhou Wahaha Group spokesman Shan Qining declined to comment on the matter.

Danone has accused its former partner Hangzhou Wahaha, whose namesake beverage brand is China's most popular, of setting up parallel businesses outside their joint ventures that sell competing Wahaha-branded products illegally.

The two sides have been trading accusations and lawsuits since April 2007 as they battle over ownership of the brand.

Their legal scuffles, including several targeting individual company executives, have been waged both in China and overseas.

Danone's Qin has been investigated by authorities in southern China's Guangdong province for suspected evasion of more than 20 million yuan in taxes, the official Xinhua News agency reported earlier this month. Company spokesman Chu said he had no information regarding that investigation.