Enrico Bondi is expected to run for the chairmanship of Parmalat in an effort personally to lead legal claims for billions of euros against banks he alleges helped prolong fraud at the company.
Mr Bondi is the administrator who steered the Italian dairy company from its startling collapse less than two years ago to a relisting on the Milan stock exchange this month. He had said his work would be finished after the relisting but has been persuaded to run in board elections on November 7th by shareholders co-ordinated by Lehman Brothers.
An announcement could come today, but people close to Mr Bondi's camp cautioned yesterday that he had not made up his mind and could decide not to run. If he does stand it will be a blow to banks that were hoping a new board might pursue Mr Bondi's lawsuits with less vigour.
Mr Bondi has filed suits in Italy and the US seeking €13.2 billion in restitution from auditors and dozens of banks he says helped Parmalat stay afloat by improperly providing access to finance.
No group has admitted wrongdoing.
Lehman, the US financial services group and a small shareholder not facing legal action, and others are hoping the director slate, which includes Mr Bondi, will win a majority of the board's 11 seats, so maximising the company's chances of adding to its €2 billion asset base with legal settlements.
But Mr Bondi's camp said over the weekend it was expecting a tough election battle against a slate being compiled by Italian banks and co-ordinated by Banca Intesa. The Italian banks, many of which are being sued by Mr Bondi, are open to the criticism that they are trying to rein in the company's legal strategy. Some are also in favour of a quick takeover of Parmalat, which might also mean new owners putting lawsuits low on their priorities.
Intesa is one of the banks advising Granarolo, another Italian dairy company that has said it would like to acquire Parmalat.
The potential conflicts of interest have arisen because Parmalat relisted with its creditor banks and bondholders swapping €20 billion of debt-related claims into equity. Distressed asset investors have bought many of the shares.
A slate backed by the Italian banks could represent about 27 per cent of the vote, with international banks making up about another 9 per cent. But not all banks want to make a stand against Mr Bondi. Citigroup, which owns about 3.5 per cent of Parmalat and is fighting a claim from Mr Bondi, plans to take no active part in the elections.
- (Financial Times Service)
