PARMALAT

Unethical Activity of Parmalat

Introduction

The company was founded by Calisto Tanzi, who in 1961 started a small dairy in Collecchio close to Parma . In the seventies the strong demand for long-life milk to Parmalat allowed to grow their market share (Buchanan, 2005). During the nineties , after the IPO, the company began to acquire several other companies in Europe, Latin America and Africa, many of which are not strictly related to the food industry (among others in Italy, the football club of Parma Football Association, the group of villages Parmatour television network and the Odeon TV ).

Parmalat is a company dedicated to the Italian origin of dairy and food item with an international presence in Europe, North America, South America, Central America, South Africa and Australia. Starting operations in 1961 grew into a multinational company producing milk, beverages, bakery and dairy products, and in 1997 entered the financial markets getting dozens of acquisitions around the world, large amounts of debt financed through equity and snacks bonuses. However, in 2001 many of these acquisitions, corporate and government divisions began to lose money.

Fraud

Parmalat was overwhelmed by a massive financial collapse burst at the end of 2003 , which has forced it to declare bankruptcy (Ferrarini, 2005). By decree of the Ministry of Productive Activities majority of Group companies were admitted to the procedure of extraordinary administration of large firms in crisis and was appointed Special Commissioner Dr. Enrico Bondi .

By decision of the Court of Parma, the companies were declared insolvent by appointing Judge Executive Officer Dr. Vittorio Zanichelli, with those judgments, have been set dates for filing applications for lodging and verifying claims.

Subsequently, the bondholders have seen their bonds converted into shares of Parmalat's new kind, listed on the Milan Stock Exchange . Parmalat entered into the history of corporate scandals. In 2003, CEO Enrico Bondi has found that the firm over 10 years forged statements. It turned out that the company's debt was eight times too low, the official income is overstated by five times, and disappeared from the accounts of more than 10 billion Euros (Dando, 2003). Data on debt Parmalat caused panic on the stock exchange, trading of company shares was suspended.

The investigation was arrested the founder and major shareholder of Parmalat Calisto Tanzi, as well as top managers and employees. In late 2003, Parmalat filed for bankruptcy, the company brought in outside management. Since 2003, Parmalat was carried out restructuring of the debt was written off.

Impact on Corporation and People

Nicolas Sarkozy and Silvio Berlusconi agreed to sell the corporation Parmalat investors in the French Lactalis. The Italian company has provoked the loudest corporate scandal of the 2000s. Company for over 10 years forged statements, fraud and cover the world's leading banks.

The French company Lactalis starts the procedure of absorption Italian corporation Parmalat, provoked the loudest corporate scandal of the 2000s (Melis, 2005). Potential buyers will appreciate the Italian dairy business group at 3.4 billion Euros at a rate of ...