Italian police have reportedly raided banks in a probe into Lactalis’s acquisition of a 29% stake in takeover target Parmalat.
According to The Wall Street Journal, police searched the Milan offices of Credit Agricole, Intesa Sanpaolo, Lazard and Societe Generale as part of an investigation into allegations of insider trading and market rigging.
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A person familiar with the case told the WSJ that police also raided two PR firms, Brunswick and Image Building.
According to Reuters, Italian police raided a total of seven or eight companies
Four individuals have been put under investigation by Milan’s public prosecutor, who opened the probe after Lactalis built its stake in Parmalat in March.
A second source told the WSJ that the probe was launched after an official complaint from Parmalat chief executive Enrico Bondi.
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By GlobalDataThe reports are the latest twist in the wake of Lactalis’s investment in Parmalat, which drew criticism from Italian politicians, banking institutions and some in business. Some in Italy see Parmalat as a strategic company to the country’s economy and want to see the dairy firm remain in domestic hands.
Lactalis, however, has stood firm and has since made a full EUR3.4bn takeover bid for the whole of Parmalat.
Reports elsewhere in Italy have today (11 May) claimed that Parmalat’s banking advisors have told the company’s board that Lactalis’s offer is too low.
A spokesperson for Parmalat declined to comment on the reports. She said, however, Parmalat’s board and advisors would wait until Italy’s financial regulator publishes its opinion on Lactalis’s board before giving their verdict.
Parmalat publishes its first-quarter financial results tomorrow.
