Parmalat rejects Lactalis takeover bid
Italian dairy company Parmalat on Tuesday rejected a takeover offer worth 3.4-billion-euro from French rival Lactalis.
Parmalat said its board, advised by US investment bank Goldman Sachs, "unanimously decided ... that the offer did not fully reflect" the value of the company.
Lactalis made no immediate comment on the Parmalat statement but its Italian arm on Monday had insisted that the 2.60 euros (3.70 dollars) per share offer would not be increased.
Lactalis, the world's top cheese producer, said in late April that its offer at 2.60 euros was 21.3 percent more than the average over the past 12 months.
It already holds 29 percent of its target, with its bid sparking stiff opposition in Italy to what is seen as another foreign takeover of an important company.
Lactalis and Parmalat together would create the world's top dairy group.
© 2011 AFP