Italian dairy firm Granarolo has confirmed that it is considering a possible takeover bid for compatriot food group Parmalat, which is due to be relisted this week as it recovers from a massive accounting scandal almost two years ago.

"We are indeed considering the deal," Granarolo's general manager, Rossella Saoncella, was quoted by Reuters as saying. Granarolo's chairman, Luciano Sita, has reportedly held talks with government officials on the subject of a possible deal.

In June, Reuters reported that Granarolo, backed by Banca Intesa, was considering a bid of up to €2bn (US$2.4bn) for Parmalat, which collapsed in December 2003 in a multi-billion-euro financial scandal. Since its collapse, Parmalat has sold off many non-core and unprofitable operations.