Source: Australian Food News

Story By: Dean Best

Parmalat, the Italian dairy processor and owner of Australian dairy brand Paul’s, has turned down a bid from largest shareholder and French dairy giant Lactalis to buy the whole of the business.

The company said that its board of directors had met yesterday (17 May) to review Lactalis’s EUR3.4bn (US$4.83bn) bid for the 71% of the group it does not already own.

After looking at the offer and an analysis of the bid from advisers Goldman Sachs, Parmalat said its directors had “unanimously concluded” that Lactalis had not reflected “the value of Parmalat in the context of a change of control transaction”.

The announcement is the latest twist in a saga that began in March when Lactalis built a 29% stake in Parmalat.

To read the full story, follow this link: www.ausfoodnews.com.au/2011/05/18/parmalat-turns-down-lactalis-takeover-bid.html