Lactalis Takes Controlling Stake in Parmalat
French privately owned dairy group Lactalis, which is the world’s largest cheese manufacturer, has increased its shareholding in Parmalat, the leading dairy group in Italy, to 29% following a Eur744m acquisition of a 15.3% stake. Lactalis is now the largest shareholder in Parmalat but has stopped short of taking a 30% stake, which would oblige it to make a full takeover offer.
The move has raised strong opposition from the Italian Government, which regards Parmalat as a strategic national asset. According to some analysts, Lactalis will now be in a position to vote in a new board at Parmalat’s annual shareholders meeting in April, so taking management control without having to pay a takeover premium.
Parmalat was, of course, at the centre of a Eur14b fraud that bankrupted the group in 2003. It has since been reorgranised and has built up gross cash of Eur1.4b.
