French retailer Casino said on Wednesday it will seek
arbitration to force the chairman of the board of its Brazilian
subsidiary Grupo Pão de Açúcar, Abilio Diniz, to
resign due to a conflict of interest after his recent election
to chairman of the board of Brasil Foods SA - one of
Pão de Açúcar's main suppliers.
A spokeswoman for Diniz said in an email to Reuters, "Abilio
Diniz reiterates that there is no conflict of interest in
carrying out the roles he occupies at Grupo Pão de Açúcar and
BRF (Brasil Foods)."
Casino Guichard Perrachon's chief executive,
Jean-Charles Naouri, and Diniz fell out early in 2012, after the
Brazilian tycoon who navigated Pão de Açúcar's rise to one of
Brazil's leading retailers tried to broker a deal with Casino's
rival Carrefour that would have helped him maintain
control of the company.