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Parmalat back in business

The Italian dairy company Parmalat went back into trading last week to the tune billions of euros, while at the same time filing suit against some companies and banks in a move that is expected to quickly make up for the scandal which forced the suspension of trade on the company in December 2003.

Most of Parmalat`s creditors, including banks, suppliers and individual investors have agreed to swap their debt against the company for new shares. The company closed out its first new day of trading last Thursday in Milan with a market value of 4.8 billion euros.

Parmalat collapsed under a 12 billion euro debt in 2003, spurred on by Bank of America announcing that an account the company said it had with that bank worth billions of euros simply didn`t exist. With the company`s newfound success, many analysts predict it could become a takeover target.