Parmalat looks at Lactalis bid

Italian dairy group Parmalat has named advisers to value French dairy giant Lactalis’s EUR3.4 billion bid for the remaining 71% of the company, according to news agency Reuters. Lactalis, Europe’s biggest dairy group, said recently it would pay EUR2.60 a share to buy the shares it does not own. The bid thwarted attempts by Italian investors to keep the food giant in domestic hands. It is said the board will only pick advisers to assess the fairness of the bid, leaving a possible defence move open.
Lactalis has increased its stake in Parmalat since March, paying EUR1.3 bn for a 28.97% share so far. Meanwhile, the Italian government took steps to counter the Lactalis plans. It passed a decree allowing Parmalat to delay its AGM by 180 days and therefore provide time for an Italian bid to form before Lactalis can take control of the board. The Italian government has also made it possible for public funds to be used to protect ‘strategic’ companies.