Source: www.breakingviews.com is Europe’s leading financial commentary service.
Companies generally get into trouble when they run out of cash. Italian dairy producer Parmalat is different. It has lost the confidence of its investors by hoarding too much.
When it comes to barmy balance sheets, Parmalat’s takes some beating. It has e3.6 billion of cash and investments. For reasons best known to itself, it has not spent this on reducing its e5.4 billion debt, even though interest on its borrowings exceeds that earned on its cash.
Access intelligence that drives action
To unlock this research, enter your email to log in or enquire about access
