Parmalat confirms buying plans

13 August 1998

Parmalat confirms buying plans

PARMALAT, the Italian food and dairy products group, confirmed plans to expand its dairy operations. But it has denied reports of a possible deal with the dairy products division of the rival national food company Cirio.

It acknowledges there have been talks to buy Cirios dairy arm for L700 billion (£244m).

Parmalat announced plans for a L1,000bn capital increase to fund acquisitions. The company has made seven acquisitions this year.

Cirio recently took over the South African Del Monte food group, but is understood to be carrying heavy debts.

• Financial Times 13/08/98 page 27 (News Digest)