Parmalat shares crash, key executive resigns

0 Comments | AFP, December, 2003

MILAN (AFP) — Shares in distressed Italian food giant Parmalat crashed by 48.59 percent to 1.15 euros in early trading and were then suspended.

Initially the share fell by 55 percent when trading was resumed Thursday after a suspension for the first three days of the week. On Friday it had closed at 2.237 euros.

Late on Wednesday the group, which is in severe trouble over funds blocked in an offshore account and payments due to bondholders on December 8, said it would honour the payments on December 15.

The statement also announced the resignation of a key figure in the group, Fausto Tonna, a member of the board and also president of Coloniale, the holding company for the Tanzi family which controls Parmalat.

For many years he was finance director of...