GROUPE Danone SA has filed a lawsuit against subsidiaries of Chinese partner Hangzhou Wahaha Group to halt alleged illegal competition, accelerating the company's dispute with China's largest beverage maker.

The world's leading dairy and drinks maker filed the complaint in California on Monday against Ever Maple Trading Ltd, Hangzhou Hongsheng Beverage Co Ltd and two individuals associated with these companies, Danone said yesterday in a statement.

British Virgin Islands-based Ever Maple Trading is the parent company of Hangzhou Hongshen Beverage, which own 100 percent share of Hangzhou Wahaha Food and Beverage Sales Co Ltd, according to the Hangzhou Administration for Industry and Commerce of China.

Danone accused Hangzhou Wahaha of illegally selling products that are the same as those sold by its joint ventures and of making unlawful use of related distributors and suppliers.

" Danone has filed this complaint to put a stop to the defendants' collective scheme to wrongfully interfere with its customer relationships and business prospects," Paris-based Danone said.

It did not disclose the amount of financial compensation it was seeking in the suit. Wahaha officials could not be reached for comment.

Wahaha has lowered its sales expectations for its joint venture to three percent this year, compared with nearly 24 percent rise in the first four months of the year.

The dispute was ignited at the end of last year when Danone offered 4 billion yuan (US$519 million) to buy the allegedly illegal companies, an offer declined by Wahaha Chairman Zong Qinghou.

Zong also accused Danone of planning a hostile takeover and complained of other unfair treatment from the French company over the past 20 years.