Parmalat: from Princes (as Bond-holders) to Frogs (as Share-holders)

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As from 6 October, the Bond-holders of Parmalat are no longer Bond-holders. Thus a bitter affair has reached the moment of being squeezed by a boa constrictor. It is only partly similar to the situation of the company Argentina. In fact in that case, the investors could accept an exchange and receive other bonds.
But in the case of Parmalat, the bond-holders have had no option but to become share-holders.

Today we see that the new Parmalat shares are quoted at around 2.6-2.7 euro.

This means that those who held the three types of bond quoted in Italy recover a measly 15%, while most of the investments on the so-called Euromarket can bring home about 33% of the nominal value; on top, they receive some warrants, which for many are little more than a wink.

But beware: even those who never wanted to risk investing in shares, now find that they have them in their hands. Itís a radical difference that obliges a rethink. For the former Parmalat bond-holders, a new story has started.

If they donít want to hold shares as a matter of principle, itís logical that they will sell the Parmalat shares that they have already received or will shortly receive. And itís absolutely unforecastable whether itís better to do that now, in a month or in a year. If however, they prefer to have a few shares in their portfolio, they can even hang on to the Parmalat shares. But these are choices that are independent of having been in the past a bond-holder of this infamous company of Collecchio. Bonds and shares are anyway, two very different beasts.

For those who want a deeper understanding of the question, there is an Internet page at the University of Turin: http://www.dm.unito.it/personalpages/scienza/parmalat.htm

Thereís also an Excel file that can be downloaded and used to see the correct number of shares to be allocated for the Parmalat bonds held: http://www.dm.unito.it/personalpages/scienza/documenti/Parmalat-az-da-ob.xls

PS: Yesterday evening on the radio programme Zapping, one of our citizens, who follows this blog, correctly defined Berlusconi as our employee. The employee Forbice who was presenting the programme, had difficulty with this definition. Strange, in the end his employer who pays him his salary at the RAI, said the right word: employee!

Please can you all say it too, the appropriate word for the RAI and for the various media: employee.
Words can change the world.

Posted by Beppe Grillo at 10:25 PM in | Comments (6)
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Have you seen this before? It's a number guessing game: http://www.amblesideprimary.com/ambleweb/mentalmaths/guessthenumber.html. I guessed 74408, and it got it right! Pretty neat.

Posted by: Merideth Carleton | February 9, 2006 08:51 PM


B.Michael, you nailed it. I am an Italian expat abroad, I feel exactly the same. And one of the most important facts of having this blog in English as well is to have people like you spreading the word: Italy is going down the drain, it needs a massive step change.
It's a start, let's as many people as possible outside Italy learn about this website, let them read it and understand the reality of our country, that we are n.75 as freedom of press, let this word spread around like a virus. This blog is pretty much the last chance we have.

Posted by: Gigi | October 20, 2005 03:04 PM


It is ideed by time to start fighting fire with fire. Our employees at the governament change rules anytime they want, play with words to confuse us (and them selves). So let's start do the same. Let's change the rules of the game, from the bottom up 'til we reach them.
You'll see then how fast things will be better.
Calling them employees (and meening it) is already a start. But it could be a move to take them down from the power too... by not recognizing the state anymore and make a new parallel one, expecially if they win the election becouse of the "rule change" they just did.

Posted by: Daniele Bonvicini | October 20, 2005 02:11 PM


Mr.Grillo ,
i'm warning you
to not use anymore proprietary software like microsoft , so excel is ,

Get Only Open Source Software :

http://www.openoffice.org/

We don't mind if everyone got microsoft software,
everyone must change
as you teach .

Karl

Posted by: Karl Koch | October 20, 2005 12:45 PM


Yes, a word can change the world.
For example start with a tomato.
Why when I go to the supermarket I have to ask for an Organic tomato.
Tomato is organic in nature! If they change the DNA of a tomato there we are ....it is not a tomato anymore.
So let's say we call the organic tomato just tomato ,like god did,
and the other one Tomato genetically changed.
You will see that many people will think 2 times before thay decide to by the Genetically changed tomato.
By fiorenzo

Posted by: fiorenzo borghi | October 20, 2005 04:40 AM


This is so interesting to me as an expat living in Italy. I know that a lot is going on, see less of it and understand only the tiniest fraction. Italians are killing themselves with silencio. Perhaps if more people from the rest of the world read this blog we can appeal to one Italian fundamental that I DO understand (you hear it every day): di non fare una brutta figura. (maybe that could translate as "don't make yourself look bad"). If Italians know that we know that the government is presenting "una brutta figura", maybe this would help the Italian people get back into caring about what their government and corporate backbone is actually doing to them. I love Italy, and this all makes me want to scream like a nonna.

Posted by: B. Michel | October 19, 2005 11:24 PM


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