Parmalat: Milkshake

Would-be investors in the new Parmalat have a hard job ahead. As the Italian dairy group prepares to re-list on the stock exchange, they don’t just have to value its core milk business. They also have to try and pin a value on the mass of lawsuits that Parmalat has filed against those it thinks helped cause its spectacular bankruptcy in 2003. The market is already taking a first shot at this. At the moment, Parmalat shares are worth around E2.40-E2.50 on the grey market. That suggests an equity...