Lactalis has raised its Parmalat stake

Lactalis has raised its Parmalat stake

Three funds have entered into an agreement to sell their 15.3% stake in food and beverage producer Parmalat to Lactalis, because their plans to elect a "highly-qualified board" have been "compromised".

In January this year, Zenit Asset Management, Skagen, and Mackenzie Financial Corporation entered an agreement to jointly file and vote for a slate of candidates to be appointed to the board of directors and the board of statutory auditors of Parmalat.

However, last week, when Lactalis took its initial 11.42% stake in the Italian dairy and drinks manufacturer, it said that it would also present a series of candidates for Pamalat's board of directors.

The three funds said today (22 March) said that Lactalis' announcement to "build substantial shareholdings" have led to an "increased risk of a split board and of an inefficient governance".

Following the transaction, Groupe Lactalis will hold around 29% of Parmalat.