Insolvent dairy group Parmalat has sued Banca Intesa and an unnamed institution for €1.9 billion in damages, Intesa, Italy's biggest bank by assets, said yesterday.

The suit, filed in Parma, is the third damages claim by Parmalat's administrators in Italy, adding to multibillion dollar US claims as the group broadens its fight against partners it says helped drive it to insolvency.

In a statement, Intesa said its Caboto unit and the unnamed institution were sued for damages worth €1.6 billion, while the Intesa group and the institution were separately sued for a total of €300 million.

The damages related to their roles as arrangers and relevant dealers of Parmalat bonds in 2001-02 and co-lead managers of Parmalat bonds issued in the first half of 2002.

Intesa said it was sued separately by Parmalat under another legal provision to recover around €1 billion from a group of Intesa units, confirming earlier reports from sources close to the situation.

Under Italian law, administrators can seek to reclaim money paid to financial institutions in the run-up to insolvency if it is suspected they knew at the time the company was in difficulty.

Asset manager Nextra became the first institution to reach an out-of-court settlement with Parmalat when it struck a €160 million deal in October.