The founder and former head of Italian company Parmalat was detained on Saturday (Italian time) by authorities investigating how billions of euros went missing at the global food group, judicial sources said.
Calisto Tanzi was detained in Milan, on the order of prosecutors probing for fraud at Parmalat.
The sources said Tanzi,65, who stepped down as Parmalat CEO earlier this month, was held on suspicion of committing fraudulent bankruptcy and criminal association, but was not charged.
Parmalat was declared insolvent earlier on Saturday, three days after the Government rushed into effect an emergency decree shielding Italy's eighth- largest industrial group from creditors while it is restructured.