RPT-China's Wahaha says Danone talks at impasse

(Repeats story first sent on March 9)

By Kirby Chien

BEIJING, March 9 (Reuters) - Hangzhou Wahaha Group, China's top beverage firm, said on Sunday talks with joint venture partner French food group Danone (DANO.PA: Quote, Profile, Research) to resolve a long-running dispute have hit an impasse as a deadline nears.

Group Chairman Zong Qinghou told reporters on the sidelines of China's annual National People's Congress, or parliament, that he could not accept Danone's demands for ending the feud.

The French company had accused Wahaha of setting up parallel and illegal operations alongside their venture that sells Wahaha branded products such as soft drinks and bottled water.

Zong said Danone has proposed that their joint venture along with the businesses at the centre of the dispute be listed as one entity and that Wahaha guarantees the value of Danone's share of the listed firm will not fall below 50 billion yuan ($7 billion).

"How can anyone guarantee a share price?" said Zong. "It's up to the market. It doesn't make any sense."

Zong said he has proposed that Danone buy his share of the joint ventures or that it be bought by a third party, but that the French company has rejected those options.

In December, Danone and Wahaha agreed to cease all lawsuits in their highly public and acrimonious dispute and enter talks to resolve the dispute.