Prosecutors investigating alleged fraud at Italian corporation Parmalat intend to widen their investigation this week into the involvement of Bank of America Corp, the Wall Street Journal reported.
Prosecutors in Parma and Milan say they expect to examine possible "collusion" between Parmalat and Bank of America, which managed about €1 billion of private placements for the company between 1997 and last year.
The WSJ also cited people familiar with the investigation as saying magistrates will continue to focus on Mr Luca Sala, a former Bank of America banker who quit last year to become a consultant for Parmalat. Mr Sala was placed under investigation last week.
Mr Sala's lawyer said he "has not committed any improprieties" in handling the Parmalat bond placements, according to the WSJ.
Citing the prosecutors, the paper said they also intend to interrogate the daughter of Parmalat founder Mr Calisto Tanzi.
Ms Francesca Tanzi, a member of the board of family owned tour company Parmatour, will be asked to explain why that company received as much as €1.5 billion from Parmalat despite not being owned by the food and dairy company.
AFP