April 10, 2008

Parmalat plans to expand to Australia
 

Italian dairy company Parmalat plans to expand to Australia, said Chief Executive Officer Enrico Bondi.

Parmalat needs to participate in the consolidation process in Australia and if there are opportunities, it will buy, Bondi told shareholders at the company's annual meeting.

According to analysts, Parmalat is a potential bidder for Australian milk and cheese producer Dairy Farmers, one of Australia's largest dairy manufacturers.

Dairy Farmers said there was wide interest in a potential deal, which could be worth AU$800 million (US$743.8 million) to AU$1 billion (US$930 million).

Parmalat is worth about EUR4.1 billion (US$6.4 billion), about the same value of the financial discrepancy that almost brought it down in 2003.

Bondi turned it around by selling non-strategic assets and improving the company's product mix.

Parmalat shareholders appointed Bondi and the other members of the board for a new mandate, the company said in a statement on Wednesday.