Fonterra is considering selling its 43% stake in Sanlu, the dairy company at the centre of China’s contaminated milk scandal.
Four babies have died and another 53,000 have been stricken with illness by the contamination.
Sanlu was the first of 22 Chinese companies identified as producers of affected baby-milk powder.
“Discussions are continuing around a number of facets of Sanlu’s future,” said Fonterra CEO, Andrew Ferrier. “These include the possibility of Sanlu being acquired by a third party.”