Lactalis to raise Parmalat stake in $1B deal

The French dairy company Groupe Lactalis says it has agreed to buy a 15.3 percent stake in Italy's Parmalat for (EURO)744 million ($1 billion), lifting its ownership to 29 percent.
Italian officials have indicated that they would move to protect Parmalat's Italian identity, saying it is a strategic business. There was no immediate government reaction.
Lactalis said it reached a deal with three major shareholders to take the stake for (EURO)2.80 a share. The price is a 16 percent premium on Monday's (EURO)2.40 closing price.
Parmalat shares were suspended Tuesday on the Italian stock exchange for excessively volatile trading.
Parmalat became a symbol of corporate greed when it collapsed under (EURO)14 billion in debt in 2003. It has successfully turned around by focusing on its core dairy business.

Updated : 2021-01-29 00:25 GMT+08:00