Parmalat Hungary for sale

- Last updated on GMT

Related tags: Appeal, Parmalat

Parmalat Hungary has confirmed that the division is to be put up
for sale and that it is now undergoing due diligence from
prospective buyers.

Speaking earlier on in the week, Parmalat chairman-CEO Cristiano Villani said that it had already been approached by several companies at its Italian headquarters who are interested in buying the Hungarian division.

The company has said that bids will be dependent on how the buyers intend to avoid cutting jobs, change employment policy and turn the firm around, among other things, Villani confirmed.

The troubled Italian food and beverage giant is currently involved in a major accounting and investments scandal that is said to involve sums in excess of €14 billion.

According to a report from MTI, nine companies, including one recently set up by the Italian firm Catone and eleven Hungarian farmers, have so far expressed interest in buying Parmalat Hungaria.

Support has rallied round for the Hungarian division, with the representatives of the dairy sector stating that they are willing to supply the firm with more milk, if a decent proposal can be made to assure its future.

Earlier on in the month, the management of Parmalat Hungary filed for bankruptcy after it got the backing of shareholders, but the Hungarian courts threw the decision out as five of Parmalat's creditors had already started liquidation proceedings against the company, a decision that the division is now appealing against.

An EGM is now set for the beginning of March to discuss the next course of action and the possible results of the court appeal

Related topics: Market Trends

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