/ 3 October 2005

Parmalat to relist in Italy

Italy’s stock-market regulator said on Monday it has given its final approval to a proposal by Parmalat Finanziaria SpA to go public, part of the dairy giant’s plan to recover from a massive fraud scandal and pay back its creditors.

Market regulator Consob said on its website that it made the decision after Parmalat provided an extra document needed to complete the relisting prospectus of the dairy group, which could return to Milan’s stock exchange as early as this week.

Parmalat shares were taken off the stock exchange following revelations in December 2003 that fraud had left a â,¬14-billion hole in the company’s books. Since then, the company has been run by a government-appointed administrator, Enrico Bondi.

Consob said the extra document it had asked for included an update on a series of lawsuits launched by Bondi against banks in an attempt to share the blame for the crash and recoup some money for the company and investors.

Parmalat’s creditors paved the way for the relisting on Saturday, when they approved ratios at which to swap the group’s â,¬20-billion debt for new shares.

Italy’s Industry Minister, Claudio Scajola, said Parmalat shares will start trading on Wednesday. — Sapa-AP