Parmalat Executive Meets With Prosecutors

ROME -- The top executive at Parmalat Finanziaria SpA met Tuesday with prosecutors investigating a euro3.95 billion ($4.91 billion) hole in the balance sheet of Italy's biggest diary company, The Associated Press reported.

The meeting occurred hours before the Italian government was to present a bankruptcy protection plan for the company. Later in the day, Parmalat was set to hold an emergency board meeting to examine its bankruptcy options.

On Monday, Milan prosecutors placed under investigation the company's founder, Calisto Tanzi, and 20 other officials, including former finance directors, for possible fraud and other charges concerning the suspected falsification of company documents. Tanzi founded the company in 1961 and ran it until earlier this month, when he was replaced by Enrico Bondi as chairman and CEO amid the growing scandal.

Bondi met with prosecutors in Parma for about an hour Tuesday. He made no comments after the meeting.

-- NYSSCPA.org News Staff

Posted on 12/23/03