Italian dairy firm Granarolo is reportedly looking at a takeover bid for its much larger bankrupt rival Parmalat.
Sources close to the deal say it would be an offer worth up to two billion euros and backed by Banca Intesa which was involved in Granarolo’s acquisition of another troubled dairy group, Yomo, last year.
There was no confirmation of the report from Granarolo or the bank. Granarolo’s chairman, Luciano Sita, is keen to keep Parmalat in Italian hands and has reportedly held talk with government officials on the matter.
It is not thought that there would be a bid before Parmalat is relisted on the stock market which is expected to happen in September or October.
here are possible obstacles to such a takeover. Granarolo is only a fraction of Parmalat’s size. Its sales were less that a quarter of Parmalat’s last year. And there could be competition issues the two firms combined would control almost 70% of the dairy market in Italy.