PARIS, Dec 22 - European shares opened lower on Monday in holiday-thinned trade, as financial woes bedevilled Italy's Parmalat , but Rhodia rebounded on reports it is close to reaching a refinancing deals with banks. Shares in Parmalat were indicated 50 percent lower at 0.15 euros -- and down from 2.24 euros 10 days ago -- as concern grew that a hole in the accounts of the global food group could be even bigger than four billion euros ($4.9 billion) revealed last week by the firm. From Monday, Parmalat trades will be collected in a special auction from 0700 GMT to 1635 GMT. From 1636 GMT to 1640 GMT the stock will trade in a closing auction and a new closing price will be set. There will be no after hours trade.
Turnaround expert Enrico Bondi, who took the reins at Parmalat last week, was meeting with bankers to decide how to file for protection from creditors and keep the company running. Capitalia , one of the banks exposed to Parmalat, fell two percent. By 0820 GMT, the FTSE Eurotop 300 index <.FTEU3> of pan-European blue chips was 0.3 percent lower at 945 points, while the narrower DJ Euro Stoxx 50 index <.STOXX50E> shed 0.2 percent at 2,720 points. The benchmark Eurotop ended last week one percent higher at its best level since September 11, 2002 -- bringing to 11 percent its total gains since the start of the year -- amid a generally improving corporate and macroeconomic picture. "We would need some big event to see some big move. Only some balance shift cosmetics and window dressing may affect trading," Rolf Elgeti, strategist at Commerzbank in London, said. With only two full trading sessions this week, investors are moving into holiday mode until the New Year, and thin trading is making for potentially erratic prices. "The next big trigger will be the fourth-quarter results in the New Year," Elgeti said. Other decliners included Volkswagen , off 2.3 percent after reports that the sales of its new Golf car, which the company had hoped would boost end-of-year revenues, were lagging expectations due to low demand and technical problems.
But French specialty chemicals maker Rhodia gained 7.5 percent after French daily La Tribune reported that the company was very close to a deal with its banks to restructure its 2.1 billion euros of debt. La Tribune said about 20 of the 23 banks holding Rhodia debt had given their consent to a deal.//