December 7, 2012 / 10:46 PM / 5 years ago

Pao de Acucar chairman wants company in Novo Mercado-source

RIO DE JANEIRO, Dec 7 (Reuters) - 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 France’s Casino.

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.

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