Parmalat

TEAM: Glavan Daniel, Bolboaca Eugen, Coste Cristian, Ceau Mihai GROUP: 128 For a hard-charging executive like Alberto Ferraris, universe named chief financial officer of a ?7.6 billion lodge was a career-making moment ? and he wasnt going to let a few nagging doubts stand in his way. Since the ships company was Parmalat, the Italian dairy-and-food conglomerate the U.S. Securities and Exchange Commission has charged with perpetrating one of the largest and close to brazen corporate financial frauds in history, and since Ferraris now faces charges of trade rigging and issuing false information, he may invite he had heeded those doubts. But back in March 2003, he says, he knew the company had some financial problems but had no idea how bad things were about to get. Parmalat was trying to style itself as the Coca-Cola of milk, and Ferraris, 46, a former Milan-based corporate banker for Citigroup, had spent six historic period building its operations in Canada and Australia. But in deeply February the company stock had nosedived when the firms irascible chief financial officer, Fausto Tonna, announced an unlooked-for new bond issue ? a fresh plus in corporate debt ? that came on the heels of several other boastfully capital-raising moves.

Parmalats founder and lifetime CEO, Calisto Tanzi, called back the bonds the following day and replaced Tonna with Ferraris to lull the waters. Within a few days, the thickset new CFO was defending his company before a roomful of financial analysts in Milan. He painted a rosy picture: gross sales and earnings were up, debt was under control, and the firm was awash in cash. live up to that hed reassured the financiers, Ferraris hoped the worst was over. It was my job to patch up relations with the market, he told in an interview at his lawyers Milan office. Then his doubts started to pile up. First, Ferraris says, he couldnt understand why the company was paying so much to service its debt; the interest payments seemed cold higher than warranted for the ?5.4... If you want to get a full essay, magnitude it on our website: Orderessay

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