Parmalat in 327m euro settlement

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Parmalat has agreed a settlement with Italian bank Intesa Sanpaolo over the bankruptcy of the dairy group in 2003.

Parmalat said Intesa Sanpaulo will pay 327m euros ($469.52m; £236.7m) in an out-of-court deal to end all lawsuits.

Earlier this year, the Italian dairy firm - now restructured - settled claims with Merryl Lynch, Italy's Banca Monte Parma and Dutch bank ING.

Parmalat is suing other banks for their alleged role in its collapse four years ago under 14bn euros worth of debt.

Wrongdoing denied

"The settlement brings all pending damages actions and all reciprocal claims eventually to be filed to an end," Parmalat and Intesa Sanpaolo said in a joint statement.

The Italian bank said separately it had agreed the out-of-court arrangement to avoid lengthy and costly legal action but denied wrongdoing.

It repeated that it had been "absolutely fair in its behaviour and totally unaware" of Parmalat's poor financial state prior to Parmalat applying for bankruptcy protection.

The deal includes a 17m euro payment to former Parmalat companies under special administration.

The collapse of Parmalat amid mountains of undisclosed debt was one of Europe's biggest financial scandals with thousands of people who had invested in the company's bonds losing money.

It returned to the Milan stock exchange two years ago as a restructured entity under new chief executive Enrico Bondi, who has led the firm through a continuing legal storm since.