Nestle Efforts in Hot Water

Swiss giant Nestle's effort to sell the Thonon mineral water unitof France's recently acquired Perrier group has run into problems.

Nestle officials have discovered that, while they might own theThonon bottling plant in the eastern French Alpine department ofHaute-Savoie, they do not own the water that goes with it.

Thonon Mayor Paul Neuraz wrote to the European Commission andthe French government a few weeks ago to remind both that under theconditions of a 30-year concession awarded to Perrier in 1964, rightsto exploit the water cannot be transfered.

After its contract with Perrier runs out in 1994, Thonon intendsto seek a more lucrative deal for its most important asset. The townreceives $1 for every 1,000 bottles of water produced, with 35million bottles to be sold this year.