Parmalat’s growing attraction

Parmalat has risen from the ashes and relisted on the Milan stock exchange, with a market value of Eur4 billion and lively trading. However, will its new status attract unwelcome foreign attention?

Parmalat’s return to trading and expected profitability has prompted a number of observers to speculate as to who will bid for the dairy company, and from what country.

Granarolo, a Bologna-based dairy, is looking at a share swap merger with Parmalat. Other possible suitors named have included France’s Lactalis and Nestle. Around 17% of the company’s shares changed hands on Parmalat’s first day of trading.

Since the crisis, the firm has sold off its less successful divisions and swapped Eur12 billion of debt for equity. This year Parmalat expects to make its first profit for 10 years.

The company is also pursuing several multi-billion Euro damage claims from banks, which would add to the bottom line. Parmalat’s lawyers have filed 49 lawsuits against various banks and advisors.