Parmalat, the Italian food manufacturer, has postponed plans for a Eurobond, just a fortnight after awarding the mandate, because of tough conditions in the capital markets.

The company originally chose Credit Suisse First Boston, Schroder Salomon Smith Barney and UniCredit Banca Mobiliare on September 12 to lead manage a five-year benchmark bond worth around €500m ($488m), but adverse conditions prompted a recent decision to drop the deal in favour of increasing its outstanding €250m transaction due in January 2007.