In an announcement to the Hong Kong stock exchange dated Monday, the beverage company said it will pay "the counterparty" the amount, and proceedings in the UK and China will be dismissed.

People familiar with the deal had said earlier the counterparty was investment bank Morgan Stanley, Dow Jones Newswires reported.

Morgan Stanley was suing Haisheng, which is 20 percent owned by Goldman Sachs Group Inc, in London for 26 million dollars over the juice-maker's refusal to put up collateral for a hedging contract, Dow Jones said.

Morgan Stanley lodged its suit against Haisheng in May 2009.

The Chinese firm in turn was countersuing the US bank in China for allegedly misselling it the contracts.

The derivatives sold to Haisheng involved a straightforward currency swap transaction between the US dollar and the Chinese yuan, and were not loss-making, the report cited a source as saying.

It said the case was unrelated to the disclosure in September by China's State-Owned Assets Supervision and Administration Commission that it would support state-owned companies that take legal action over losses on commodity-related derivative contracts.

In December China accused several foreign investment banks of "maliciously" selling derivative products to dozens of state-owned companies, which then booked billions of yuan in losses on the deals.

The State-Owned Assets Supervision and Administration Commission singled out Goldman Sachs, Merrill Lynch, Morgan Stanley and Citigroup in an article published by state media.

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