LONDON (AFX) - A group of Italian banks will use Parmalat's Nov 7 shareholder meeting to try to have its manufacturing operations separated from the legal actions related to its collapse two years ago, the Financial Times reported.
The newspaper said, without giving its sources, that the banking faction supporting the split could include Banca Intesa, Capitalia, SanPaolo IMI and Banca Monte dei Paschi di Siena.
The FT said the banks want the split because it could ease Parmalat's quick sale to a rival.
Parmalat's administrator, Enrico Bondi, would prefer to build up Parmalat as a major food company, the newspaper said. It cited a person close to the Bondi camp as saying the split would be a "clear first step towards a carve-up and sell-off of Parmalat and its assets with a ruse to minimise the pain of the legal actions."
Bond is suing dozens of banks for billions of euros for their alleged role in Parmalat's collapse. The banks have swapped their debt for equity, and Parmalat was relisted this month.
The FT cited people close to the banks' camp as saying the legal process should be put into a "litigation stub" -- a promise to pay shareholders proceeds from any settlement. The banks say the split would create greater transparency, the newspaper said.
The Nov 7 shareholder meeting will involve elections for a board of directors, and Bondi has agreed to stand for election as CEO.
The FT said Lehman Brothers is leading a group of shareholders compiling one list of directors, while the Italian banks are likely to draw up a different list.
The lawsuits allege that certain Italian and foreign banks contributed to Parmalat's bankruptcy by helping it issue debt and that they benefited from subsequent debt repayments.
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The newspaper said, without giving its sources, that the banking faction supporting the split could include Banca Intesa, Capitalia, SanPaolo IMI and Banca Monte dei Paschi di Siena.
The FT said the banks want the split because it could ease Parmalat's quick sale to a rival.
Parmalat's administrator, Enrico Bondi, would prefer to build up Parmalat as a major food company, the newspaper said. It cited a person close to the Bondi camp as saying the split would be a "clear first step towards a carve-up and sell-off of Parmalat and its assets with a ruse to minimise the pain of the legal actions."
Bond is suing dozens of banks for billions of euros for their alleged role in Parmalat's collapse. The banks have swapped their debt for equity, and Parmalat was relisted this month.
The FT cited people close to the banks' camp as saying the legal process should be put into a "litigation stub" -- a promise to pay shareholders proceeds from any settlement. The banks say the split would create greater transparency, the newspaper said.
The Nov 7 shareholder meeting will involve elections for a board of directors, and Bondi has agreed to stand for election as CEO.
The FT said Lehman Brothers is leading a group of shareholders compiling one list of directors, while the Italian banks are likely to draw up a different list.
The lawsuits allege that certain Italian and foreign banks contributed to Parmalat's bankruptcy by helping it issue debt and that they benefited from subsequent debt repayments.
newsdesk@afxnews.com
jsa/cmr
COPYRIGHT
Copyright AFX News Limited 2005. All rights reserved.
The copying, republication or redistribution of AFX News content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.
AFX News and the AFX Financial News logo are registered trademarks of AFX News Limited
For more information and to contact AFX: www.afxnews.com and www.afxpress.com