December 9, 2012 / 5:25 PM / in 5 years

Brazil's Pao de Acucar: not moving to Novo Mercado

SAO PAULO, Dec 9 (Reuters) - The controlling shareholder of Brazilian retailer Pao de Acucar is not considering moving the company’s shares to the Novo Mercado segment of the Sao Paulo stock exchange, the company said on Sunday.

Reuters had reported on Friday, citing a person familiar with the plans, that Pao de Acucar Chairman Abilio Diniz wanted to make such a change to try to ensure greater corporate governance.

Earlier this year, Diniz handed majority control of the retailer over to France’s Casino in a transaction that has been marked by several conflicts between the two parties.

Pao de Acucar said in a letter to the stock exchange on Sunday that Casino “is not considering, at this time, the move of the company to the ... Novo Mercado.”

The Novo Mercado is a segment of the Sao Paulo exchange with stricter governance rules than the rest of the market. Among other rules, it requires that all shares of companies trading in the Novo Mercado segment have voting power.

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