Italy strategic fund to have $28.80b

MILAN, April 9 (Reuters): The fund Italian Economy Minister Giulio Tremonti wants to set up to save strategic companies from foreign takeover will have some 20 billion euros ($28.80 billion) available, the La Repubblica daily said Saturday. The Italian government has introduced a special decree to give dairy group Parmalat time to find domestic investors to take control of the group after French rival Lactalis bought a 29-per cent stake. Without citing its sources, La Repubblica said the strategic fund to be set up Monday could invest in Parmalat as well as other targets for foreign takeover such as Italian power generator Edison and asset managers. Contributions to the fund would come from state holdings CDP and Fintecna, state pension institution INPS, as well as sovereign funds, the newspaper said. A visit by Tremonti to China last week included talks on a Chinese contribution to the strategic fund, the newspaper said, citing an unnamed investor in the fund. The fund "ought to invest in companies that know how to gain and remunerate" investors, the investor was quoted saying. The CDP has called an extraordinary shareholder meeting for Monday, which will include discussion on the implementation of a recent decree giving it scope to invest in strategic companies, a source close to the situation said last Friday.