An apparent act of sabotage may harm the mainland dairy firm's listing plans
Inner Mongolian milk company Meng Niu Dairy could be the victim of its own success, with rumours of tainted milk souring the firm's prospects ahead of its listing on the Hong Kong and New York stock exchanges this year.
Last month, the health authority in Hubei province issued a warning notice saying it had received reports that Meng Niu's milk had been 'poisoned'. However, the authority retracted its formal notice two days later, when it appeared that only a few bottles of milk in one store were affected.
The health authorities said they believed Meng Niu was not at fault and it had been the victim of sabotage, presumably from rivals.
'After an investigation, we found out that it was actually not a quality problem but an intentional act designed to damage the reputation of the brand,' one Meng Niu source said.
Local newspapers said the police were offering a reward of up to 100,000 yuan to find a woman 'who was allegedly involved in a severe crime'. It is not clear if she was acting alone or on behalf of others.
