March 27, 2019 / 10:53 AM / 9 months ago

Italian court rules against Citibank on blocking Parmalat share delisting

A Citibank branch is seen in Santa Monica, California, U.S. March 19, 2018. REUTERS/Lucy Nicholson

ROME (Reuters) - An Italian administrative court has rejected a request from Citibank to block the delisting of shares in dairy group Parmalat from the Milan bourse, court documents seen by Reuters showed on Wednesday.

Parmalat’s main shareholder Sofil is seeking to take the Parma-based group private after raising its stake to 95.8 percent and buying out minority shareholders.

The move is opposed by Citibank, which is seeking 345 million euros ($389 million) from Parmalat as compensation in a lawsuit and could receive the sum in the form of shares.

In a statement Citigroup said it was disappointed at the ruling, adding it would consider all potential next steps including an appeal.

The U.S. bank turned to the administrative court earlier this month asking for a suspension of a decision by market regulator Consob and the Milan bourse, which had given a green light to the delisting.

(The story refiles to fix typographical error, paragraph 1)

Reporting by Domenico Lusi; writing by Francesca Landini, editing by Silvia Aloisi and Alexander Smith

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