ABSTRACT
In 1961, Calisto Tanzi dropped out of university to concentrate on turning around the small family business, near Parma, Italy. Tanzi was 22 when he inherited the family business that was started by his grandfather. Tanzi Calisto e Figli-Salumi e Conserve (Tanzi Calisto & Sons-Cold Cuts and Preserves) produced processed foods like seasoned ham, cured meat, and tinned tomatoes. Tanzi, who had a strong entrepreneurial streak, was not satisfied with simply running the family business and decided to diversify. After noticing a carton in a supermarket in Switzerland, he decided that the
Tanzi the Innovator ........................................................................................... 221 The Boom Years .................................................................................................. 222 Creation of Parmalat Finanziaria: A Family Affair ...................................... 223 Diversification into Football and Tourism ..................................................... 224 Parmalat and the Italian Code of Best Practice ............................................. 224 International Expansion ................................................................................... 225 Milking the Banks, Offshore Tax Havens, and “Big Bath” Accounting
Behavior ..................................................................................................... 226 A Crude Forgery and the Black Hole “Buconero” at Parmalat .................... 227 Fraud Mechanisms, Cooking Books, and Auditors ...................................... 228 Reality Bites: The €14 Billion Black Hole ........................................................ 229 Tanzi Loses Power: Behind Bars ...................................................................... 230 Notes .................................................................................................................... 232 References ............................................................................................................ 234 Bibliography ........................................................................................................ 234
route to success was through milk. Aged 23, he ventured into dairy products, building a milk pasteurizing plant in Colleccchio, near a railway station in Italy’s gastronomic capital, Parma. The milk produced at the plant was supplied to Parma and surrounding towns, mainly through door-to-door sales.
