The board of Italian food group Parmalat has said a 3.4 billion euro buyout bid by French dairy group Lactalis is too low.
That rejection came after they met to discuss an analysis of the offer by financial advisers Goldman Sachs – which concluded it does not reflect the true value of Parmalat.
The board did not indication what price would be acceptable however analysts do not expect Lactalis to raise its bid. It is offering to buy the 71 percent of Parmalat it does not already own to create the world’s biggest milk products maker.
Earlier trade union representatives at Parmalat said they approve of a takeover by Lactalis.
Their backing came after meeting with managers from both companies.