Italian food giant Parmalat is suing a subsidiary of London-based fund manager Hermes for €5bn ($7.9bn), accusing the fund manager and former shareholder of worsening the company's collapse in 2003.

According to Parmalat's latest annual report, it is claiming damages from Hermes Focus Asset Management Europe for the "worsening of the financial distress" that Parmalat suffered after it collapsed following an accounting fraud that placed it billions of dollars in debt. In 2005 the company restructured, and relisted in October that year.