On Thursday, a Danone SA unit said it was considering legal action against Fonterra of New Zealand after it had to recall its Karicare milk formula products. The recall was due to a global botulism scare brought about by incorrect tests.

Fonterra warned earlier this month that the whey protein used in the products contained bacteria that may cause botulism. Subsequent testing by New Zealand's Ministry of Primary Industries, however, showed a different strain of the bacteria that posed no safety threat.

The contamination scare had already caused product recalls in nine countries, including those by the Danone unit, Nutricia. Nutricia ordered a recall of 67,000 tins of infant formula in New Zealand. According to the company, its own tests showed a negative result for the bacteria in question.

"There are more countries involved in this situation and we are considering our position at the moment," said Corine Tap, general manager of Nutricia ANZ, when reporters asked whether the company planned to take legal action against Fonterra and the New Zealand laboratory that performed the incorrect tests. She added that, at the moment, she did not have any figures on the damages Nutricia suffered as a result of the recall.