Source: Australian Food News

Story By: Dean Best

Lactalis has received the approval of Italy’s stock market regulator CONSOB for the French dairy giant’s takeover bid for local rival Parmalat.The green light from the regulator is a boost to Lactalis, which has faced political opposition in Italy since it first bought a stake in Parmalat in March.

Lactalis, which owns 29% of Parmalat, tabled a EUR3.4bn takeover bid for the remainder of the business last month.

Reports in Italy have said that the Parmalat board, which has hired Goldman Sachs to advise it on Lactalis’s EUR2.60-a-share offer, will meet next week to discuss the bid. There have been claims that Goldman Sachs will advise Parmalat that the offer is too low.

Lactalis built its 29% stake in Parmalat through two transactions in March. The second deal saw Lactalis buy 15.3% of the company from three funds in a deal worth EUR2.80 a share.

To read the full story, follow this link: www.ausfoodnews.com.au/2011/05/16/regulator-approves-lactalis-bid-for-parmalat.html