Executives at Italian food group Parmalat are preparing a last-ditch bid to rescue the struggling company from collapse and to save the jobs of more than 36,000 workers worldwide.
As the group faced mounting financial and legal pressures, Parmalat chairman Enrico Bondi was to meet union leaders to discuss the fate of the company, which has been hit by the discovery of a €4 billion shortfall in its accounts.
The crisis has jolted the Italian business sector and has been described by Economy Minister Giulio Tremonti as 'Europe's Enron', a reference to a massive accounting scandal that brought down US energy giant Enron in 2001.
Italian Prime Minister Silvio Berlusconi has said the government will ultimately intervene to preserve jobs and the cabinet is expected to debate rescue proposals on Tuesday.
The group, which has a workforce of more than 30,000 in 30 countries, including 4,000 in Italy, was already struggling to cover estimated debts of €6 billion when the hole in its accounts was discovered.
Trading in Parmalat shares was suspended at mid-day on Friday after having plummeted 66%, representing a loss in value of €1.5 billion.
