Lactalis ups offer for rest of Parmalat shares

Lactalis ups offer for rest of Parmalat shares

Lactalis has raised the price it is offering to buy out minority investors in Italian dairy giant Parmalat.

The France-based dairy group, which owns just under 88% of Parmalat, yesterday (9 March) upped its offer from EUR2.80 (US$2.99) a share to EUR3. Lactalis said the offer would expire on 21 March.

Activist investor Amber Capital, which has a 3% stake in Parmalat, reportedly said last week Lactalis should increase its offer to at least EUR3.50.

Daniele Ridolfi, an analyst at French finance house Kepler Cheuvreux, said investors should accept Lactalis's new bid.

"The offer price is now in line with our target price we thus suggest to accept the offer," Ridolfi said.

Lactalis acquired control of the company in 2011 after what had been seen in some quarters as a controversial pursuit of the business.

Earlier this month, Parmalat acquired "several" cheese-making companies in Chile at a combined enterprise value of around EUR100m.