Parmalat An underpriced gem?

Deloitte’s settlement with Parmalat shines a spotlight on the company’s hidden value. The E115m agreement represents what could be the first in the next batch of settlements for Parmalat. Shares in the Italian dairy group, which collapsed in a spectacular fraud in 2003, did rise 2% on the news. But its enterprise value is still only E5.5bn. Given that its core dairy business is valued at about E4.1bn, the market is implying that Parmalat can get only E1.4bn from its remaining E21bn lawsuits. The...