Parmalat Scandal Case Study
• In 2003, bondholders learn that nearly €4bn of funds in a Bank of America account is non-existent. The bank says the transfer document is a forgery. Trading in Parmalat shares are frozen. Tanzi, various family members and several executives are arrested, including chief financial officer Fausto Tonna.
Parmalat S.p.A. is a dairy and food corporation which is a subsidiary of French multinational company Lactalis. It was founded by Calisto Tanzi in 1961. Having become the leading global company in the
Parmalat had spent €130 million on Odeon TV, but it collapsed within 3 years. In order to prevent bankruptcy at this point, Parmalat had to sell itself to a company that was already listed on the Milan stock exchange. This helped to produce €150 million from external investors, and paved the way for Parmalat to be in public view in 1990.