Lactalis launches takeover bid for Parmalat

MILAN, ITALY: French dairy giant Lactalis launched its takeover bid for Parmalat on Monday, 23 May 2011, despite opposition from the Italian company's board to the €3.4-billion (US$4.8-billion) offer.

Parmalat shares were stable at €2.602 on the Milan stock exchange at the start of trading.

Lactalis already owns a 29% stake in Parmalat and made its surprise takeover offer last month at €2.60 a share.

Italy's financial regulator gave the go-ahead to the takeover this month.

But Parmalat's board, advised by Goldman Sachs, rejected the takeover offer, saying it "did not fully reflect" the value of the company.

Lactalis and Parmalat combined would create the top dairy company in the world.

Source: AFP


 
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