European antitrust bodies have confirmed that they are “observing” the increasingly rancorous battle for control of Parmalat, as an Italian court today (11 April) threw its weight behind the Italian dairy group’s move to retain operational independence.
France’s Lactalis took a 29% stake in Parmalat at the end of last month, sparking fears within Italy that Parmalat would fall into foreign ownership.
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Lactalis subsequently insisted that it was not looking to take 100% ownership of Parmalat. However, the French firm did reveal that it is eyeing majority board representation by proposing a slate of its own candidates for nomination to the company’s board. Lactalis said that by increasing its sway over Parmalat’s strategic direction, it expected to grow the group’s brands, improve performance and foster a closer relationship with Lactalis’ own global businesses.
With Parmalat’s annual shareholders meeting – when Lactalis would be able to put forward its board nominations – due at the end of this month, the Italian government interjected and introduced a law allowing Parmalat to delay the AGM.
It was announced this morning that Parmalat has won court backing for its plan to delay the shareholder meeting by two months, during which time it is hoped that a consortium of Italian investors can be formed to block Lactalis’ bid for managerial control. In a ruling reached on Friday, the Court of Parma concluded that the move to reschedule Parmalat’s AGM is “in compliance” with decree law No. 26, the law introduced to allow Parmalat’s delay.
However, a spokesperson for the European Commission, Europe’s antitrust regulator, confirmed that officials are “closely monitoring events”.
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By GlobalData“There are some concerns that the Italian government could act in breach of European agreements on competition and the free movement of capital. However, no conclusion has been reached,” a spokesperson told just-food. “We are currently simply observing developments at this stage.”
