RIO DE JANEIRO Dec 7 Abilio Diniz, chairman of
Brazil's largest retailing group, will ask the rest of the board
of Pao de Acucar to move the company's shares to the
Novo Mercado segment of the Sao Paulo stock exchange, a person
familiar with the plans said on Friday.
The person said this was an effort by Diniz to ensure a
greater degree of corporate governance at Pao de Acucar. Earlier
this year Diniz handed majority control of the retailer over to
The Novo Mercado is a segment of the Sao Paulo exchange with
stricter governance rules than the rest of the bourse. Among
other rules, it requires that all shares of companies trading in
the Novo Mercado segment have voting power.
Diniz, who remains at odds with Casino after losing a bitter
struggle for control of the company founded and once controlled
by his family, will propose the change at a board meeting next
week, the person said.
A spokesperson for Pao de Acucar could not immediately be
reached for comment. Calls to the company's press office in Sao
Paulo were unanswered.