According to reports, the Venezuelan Vice President has said the government is planning to buy the Venezuelan subsidiary of the collapsed Italian dairy group Parmalat SpA.

Jose Vicente Rangel told the state-run news agency that the Parmalat unit would become a state-controlled company, with local Parmalat employees holding shares in the company.

No further details were given but it was also reported that the Venezuelan Parmalat operation is considering selling off two of its seven plants.