May 30, 2013 / 4:27 PM / 5 years ago

Parmalat to cut LAG acquisition price by $130 mln

MILAN, May 30 (Reuters) - Italian dairy firm Parmalat said on Thursday it reached an agreement to cut the purchase price of sister company Lactalis American Group (LAG) by $130 million.

Parmalat’s board decided May 10 to request a $144 million cut in the acquisition price of LAG. Both LAG and Parmalat are owned by French cheese maker Lactalis.

Parmalat is facing criminal and civil inquiries into the May 2012 LAG deal, which critics say drained the Italian company of cash.

Parmalat paid a preliminary price of $904 million when the deal closed.  (Reporting by Jennifer Clark; Editing by Lisa Jucca)

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