French dairy products group Lactalis denies plan to buy Parmalat

Lactalis, the French multi-national dairy products company yesterday denied media reports that it was preparing to buy the remaining stake in Italian dairy group Parmalat S.p.A., in a deal valued at more than €5 billion.

Britain's Daily Mail reported on Thursday that Lactalis, owned by the Bernier family, which owns a controlling stake in Parmalat, made a $6.65 billion offer to take full control of the company.

The Bernier family holds an 83.3-per cent stake in Parmalat through their investment vehicle Sofil.

"In relation to articles which have appeared in the local and foreign press, the Lactalis Group announces that the rumours are unfounded," Reuters today reported citing a spokesman for the group as saying in an emailed statement.

Founded in France nearly 80 years ago, Lactalis is the world largest diary group, employing more than 54 000 and operating in 56 countries through 200 factories.

With well known brands such as Président, Galbani and Parmalat, the company generates annual revenue of €15 billion.

Borsa Italiana Stock Exchange-listed Parmalat is a leading Italian dairy and food company with operations in Europe, Latin America, North America, Australia, China and South Africa.

It specialises in milk and milk derivatives like yogurt, cheese, butter ice cream, and also has an makes fruit juices.

With brands like Lactis, Santal, Malù, and Kyr, Parmalat has around 140 production centres and more than 36,000 employees.

The company was restructured in 2006 after it entered bankruptcy in 2003 due to financial fraud that left the company burdened with debts of around €14 billion ($20 billion). The bankruptcy is Europe's biggest till date.