Danone's acquisition of Robust, when Wahaha allegedly lost 80 million yuan (US$10.5 million). In July 2007, Shenyang Industrial Development Co. (沈阳陵东实业发展总公司), who holds a 5% stake in Shenyang Wahaha Drinks Co, filed in the local courts against Danone nominated director since 1996, Qin Peng (秦鹏), for being a Director of some twenty competing entities without board approval. The final straw A Commerce Department official who was asked for comment said he believed the dispute was not inherently commercial nor contractual, but was more to do with "fault". An article published in Caijing in May 2007 hinted that there may have been impropriety: Profits were siphoned off into factories and other external ventures in breach of the joint venture agreement; shareholdings were shuffled around to the detriment of other shareholders. Although Danone may have offered to buy out the external ventures for the quoted ¥4 billion, this payment was considered an olive-branch to end the irregularities. In failing to obtain a follow-through, and in the light of a media assault by Zong, Danone had run out of options for an amicable solution to the dispute. The dispute took on a personal dimension when Danone filed in Los Angeles against his wife and 25-year-old daughter, who represented interests which owned the external ventures. Zong accused Danone of trying to destroy his family. In 2009, Danone Group exited the joint venture by selling their 51% stake in Wahaha Group to Wahaha Group for an estimated $500 million. Timeline 28 March 1996, joint venture agreement signed 1998, Peregrine collapsed, Groupe DANONE becomes majority owner. December 2006, Danone and Zong allegedly signed a deal allowing Danone to buy out the companies "external" to the JV operations January 2007 Zong denounces deal 9 April 2007 Danone sent a warning letter to the Chairman of the Wahaha joint ventures, giving 30 days for WHH to stop illegally selling products under Wahaha trademark without proper authorization 11 April Zong accuses Danone of "hostile takeover" of Wahaha 9 May, Danone filed a suit in Stockholm. 4 June, Danone filed suit in Los Angeles against several parties connected to Zong for damages of US$100 million. 5 June, Zong resigned as Chairman of the joint ventures 17 June, Hangzhou Arbitration Committee accepts application for arbitration 22 June Chinese partners on joint venture board refuse to endorse appointment of Emmanuel Faber as chairman to replace Zong 12 July, lawyers representing Danone hold