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STOCKS NEWS EUROPE-Parmalat rises on Danone takeover talk

Wed May 27, 2009 4:10am EDT

Stocks

   

Shares in Italian food company Parmalat (PLT.MI) rise 4.6 percent to their highest levels since September on press speculation it could be a takeover target for France's Danone (DANO.PA).

Sector experts cited by Il Sole 24 Ore on Wednesday say Danone could use its 3 billion euro capital raising for acquisitions, with Parmalat and dairy products maker Granarolo possible targets in Italy.

"This speculation might give a boost to the (Parmalat) share price in the short term," Mediobanca analyst Chiara Rotelli, who rates Parmalat an "outperform", says in a note.

But she adds an acquisition looks unlikely as it would raise antitrust problems given the already strong position of Danone in the Italian dairy business.

Reuters Messaging: rm://danilo.masoni.thomsonreuters.com@reuters.net


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