27 May 2009 - Shares in Italian food company Parmalat rise 4.6 percent to their highest levels since September on press speculation it could be a takeover target for France's Danone.
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.