French dairy group Lactalis today (23 May) opened its tender offer to acquire all the shares that it does not currently hold in Parmalat.
The company, which already holds a 29% stake in Parmalat, has offered EUR2.60 (US$3.64) a share for the Italian dairy company and the tender will run until 8 July, Lactalis indicated.
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However, in a note to shareholders on Friday, Parmalat’s board communicated the findings of an independent report by investment bank Goldman Sachs, which concluded that the Lactalis offer was “low”.
“We issued a document – the board of directors – saying that the advisor Goldman Sachs had decided that the price offer by Lactalis was too low,” a spokesperson for Parmalat indicated.
According to the spokesperson, Goldman Sachs evaluated the offer based on three criteria – earnings multiples, recent offers and “other data bases”.
“In two of the models, the offer was just above the minimum price range, with EUR3.17 per share as the maximum. In the third case, Lactalis’ offer wasn’t even above the minimum price,” the spokesperson said.
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By GlobalDataLactalis declined to comment further on the takeover. Shares in Parmalat remained relatively flat in Milan trading today, rising 0.08% to EUR2.602 at 1.30pm (GMT).
