Paris: The battle for control of Parmalat has become a hot political issue French dairy firm Groupe Lactalis has launched a €3.4bn $4.9bn; £3bn) takeover bid for Italian rival Parmalat.
Lactalis says it plans to keep Parmalat, Italy’s biggest listed food group, trading on the Milan stock exchange, according to the British Broadcasting Corporation..
The company says it will pay €2.6 per remaining Parmalat share. Lactalis already owns 29 per cent of Parmalat.
Trading in Parmalat shares was suspended ahead of the statement.
The battle for control of Parmalat has become a hot political issue in Italy, with the company becoming bound up in issues of national identity amid fears over the increasing strength of French foreign investors in Italy.
French luxury goods group LVMH has announced it is to buy Italian jeweller Bulgari, while Italian and French investors are also battling over the Italian power generator Edison.
Some analysts believe Lactalis will face further competition in its bid for complete control of Parmalat.
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Groupe Lactalis in takeover bid for Parmalat