French food giant Danone said in Shanghai on Tuesday that it still believes an amicable resolution to the dispute with Wahaha is possible.

Emmanuel Faber, who was appointed the new interim chairman of Wahaha by Danone last week, said Danone hopes to reach an amicable resolution "with government support."

Faber said the next step was to hold a board meeting with Chinese directors to discuss operations and management.

The dispute did not interrupt the operation of Wahaha but will affect the company's development, Faber said.

The feud between Danone and Wahaha, China's drink giant, began last year but was made public in April.

Danone has accused Hangzhou-based Wahaha of violating their 1996 agreement by illegally setting up companies outside their joint venture. Danone is demanding a 51-percent stake in the companies.

Wahaha says the joint venture agreement was never approved by China's trademark office and so is invalid and unenforceable.

Danone has filed a lawsuit in the United States against the companies it says are using the Wahaha name to sell products outside the scope of the original joint venture agreement.

Zong Qinghou, founder of Wahaha Group, resigned from his post as chairman of its 39 joint ventures with its French partner Group Danone after the lawsuit began in the United States.