Parmalat on the verge of bankruptcy

Italian dairy group Parmalat is expected to file for bankruptcy this week after a 4 billion euro hole was discovered in its accounts. The actual figure could be nearer 7 billion euros according to sources familiar with the company. Italian magistrates have opened criminal procedings and have been searching the offices of Grant Thornton, the auditor of many of Parmalat's subsidiaries. Italian prime minister, Silvio Berlusconi, has said that the goverment would intervene if necessary to save jobs at the company.