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UPDATE 1-Ferrero no plans yet for full Parmalat takeover

Published 03/23/2011, 04:50 AM
Updated 03/23/2011, 04:53 AM

*Ferrero not planning full takeover of Parmalat-source

*Met Lactalis, but failed to reach deal on Parmalat-source

*Ferrero won't act before govt decision on anti-takeover law

By Antonella Ciancio

MILAN, March 23 (Reuters) - Italy's top food group Ferrero is not currently considering a full takeover of Parmalat, the dairy company at the centre of a tussle between potential Italian buyers and France's Lactalis, a source familiar with the situation said.

Ferrero, maker of chocolate spread Nutella, met Lactalis' owners in Paris this week to consider a possible acquisition of the French group's stake in Parmalat, but did not reach an agreement, another source close to the matter said.

Ferrero is not considering a full takeover of Parmalat at the moment and will wait for a decision by the Italian government on a possible anti-takeover law before choosing its options.

"Ferrero does not see a full takeover as an option at the moment," the first source said. "The group does not intend to overpay for Parmalat."

French dairy group Lactalis has raised its stake in Parmalat to just below 30 percent. Italy's government has been considering legislation to keep strategic companies in Italian hands.

ANTI-TAKEOVER LAW?

Italian Economy Minister Giulio Tremonti is expected to outline on Wednesday measures designed to halt such takeovers of Italy's major companies.

These measures are expected to be discussed in cabinet.

Italy's number two power group Edison is also engaged in a battle for control with French shareholders.

Details of the proposals, first broached last week, have not been fleshed out. Last week, France's ambassador to Italy was summoned to a meeting in the prime minister's office, a sign of how seriously the issue has been taken by the Italian government.

Lactalis and Ferrero both declined to comment.

(Writing by Lisa Jucca, additional reporting by James MacKenzie in Rome and Lisa Jucca in Milan. Editing by Jane Merriman)

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