By Luciana Magalhaes
SAO PAULO--Abilio Diniz sold 7.9 million preferred shares of
Brazil's largest retail concern, Grupo Pao de Acucar (PCAR4.BR,
CBD), Tuesday for 846 million Brazilian reais ($426 million) as he
seeks to diversify his investments, according to a person familiar
with the sale.
Mr. Diniz, who is chairman of GPA, had sold 17 million preferred
shares of the company in January at BRL89 a share. At that time, he
invested at least part of the proceeds of the sale in shares of
food company BRF-Brazil Foods S.A. (BRFS3.BR, BRFS), whose chairman
he is seeking to become. BRF shareholders are scheduled to vote on
his nomination later Tuesday.
France-based Casino Guichard-Perrachon's (CGUSY, CO.FR), which
controls GPA, has called for Mr. Diniz's resignation as GPA
chairman to avoid conflicts of interest. GPA buys products sold by
BRF. The two companies have close commercial relations.
Mr. Diniz declined to comment.
Write to Luciana Magalhaes at luciana.magalhaes@dowjones.com