&lt;Gruppo Ferruzzi> is studying aproject which could result in a public share offer of up to 49
pct of its French unit &lt;European Sugar (France)> and could
raise around 400 mln dlrs, Ferruzzi chairman Raul Gardini said.
    Gardini told Reuters the operation under consideration was
aimed at "international markets" and that the figure of 400 mln
dlrs given in some press reports "was probably about right."
    European Sugar, wholly-owned by Ferruzzi unit Eridania
Zuccherifici Nazionali SpA &lt;ERDI.M>, is expected to absorb the
European corn wet milling business of CPC International Inc
&lt;CPC.N> which Ferruzzi recently agreed to buy.
    Ferruzzi announced last week it had agreed in principle to
buy the CPC operation for 630 mln dlrs.
    A Ferruzzi spokesman later confirmed that the group was
studying the transfer of the CPC business to European Sugar
along with a possible share offering in the Paris unit, but
gave no details.
    The flotation plan has been interpreted by financial
analysts as a means of helping finance the acquisition of the
CPC business.
    In London yesterday, chairman of Belgian starch producer
&lt;Amylum NV> Pierre Callebaut told Reuters that since Ferruzzi
was "apparently still organising finance," his company might
still succeed with its rival bid for the CPC business.
    Gardini, commenting on Callebaut's remarks, said the 630
mln dlrs agreed for the CPC acquisition would be paid "at the
date foreseen in the preliminary contract."
    Gardini could not reveal the date in question nor give any
indication of the likely timing of an offering of shares in
European Sugar, but it was announced last week that Ferruzzi's
purchase of the CPC business was expected to be completed by
September 30.
    Callebaut said yesterday that Amylum was surprised and
disappointed that its 675 mln dlr bid cash offer for CPC's
European business was apparently rejected in favour of
Ferruzzi's lower bid.
    Gardini, commenting on Callebaut's remarks, said "Amylum
should know that one succeeds in a bid by making the right
offer at the right moment - exactly as Ferruzzi did in the case
of the acquisition of CPC's European business."
    Gardini said it was not Callebaut's business to concern
himself with the European Sugar capital raising operation under
study, he added.
    Asked about press reports that Ferruzzi might follow up the
European Sugar flotation with the sale of 49 pct of the CPC
business, Gardini said: "We do not exclude having minority
partners in the CPC business." He declined to elaborate.
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