Parmalat returns to Milan market

Parmalat's fortunes crumbled after a hole was found in its accounts

Dairy firm Parmalat has returned to the Milan stock exchange after two years in bankruptcy protection following one of Europe's biggest financial scandals.

The firm's 1.6 billion shares, listed among the blue chip stocks, opened at a price of 3.15 euros ($3.80; £2.14).

The move comes amid talk of a possible takeover, with Italy's top milk producer Granarolo and French dairy group Lactalis expressing interest.

Parmalat was delisted in 2003 after a 14bn euro hole was found in accounts.

Under its government appointed administrator Enrico Bondi, Parmalat has been cutting jobs and refocusing on its core dairy and fruit juice operations.

Suitors emerge

The slimmed-down company is widely seen as a potential takeover target as it emerges from bankruptcy administration.

"We are indeed considering the deal," Granarolo general manager Rossella Saoncella said on Tuesday. "An announcement is not imminent, we are waiting to see how things go."

A spokesman for Lactalis, which owns cheese brands including President, said it was "impossible (to think) that we're not looking at Parmalat, as other groups are doing".

Calisto Tanzi is facing fraud and market rigging charges

However, Swiss food giant Nestle dismissed rumours that it was buying up bonds in Parmalat following reports that it was considering an offer for the Italian firm.

On Saturday, the firm's creditors received legal approval for a plan to swap 12bn euros of debt into shares, pending the way for the relisting.

On Tuesday, Parmalat revealed that it was suing Credit Suisse First Boston for 7.1bn euros in damages over the Swiss-based bank's alleged role in the Italian group's collapse.

Parmalat has already lodged other claims against Citigroup, Bank of America, UBS, and auditors Grant Thornton.

The trial of Parmalat founder Calisto Tanzi and 15 others accused of accounting fraud and market rigging got underway last month, but was soon suspended.