--Term runs to 2015
--French group opposes Diniz's holding two chairmanships
--Diniz reportedly diversifying his investments
(Updates with Abilio Diniz comments and information about
BRF.)
By Luciana Magalhaes
SAO PAULO--Shareholders of Brazil's giant food company
BRF-Brasil Foods S.A. (BRFS3.BR, BRFS) elected businessman Abilio
Diniz to be chairman for 2013 to 2015, setting up a clash with his
partners in another Brazilian firm, Grupo Pao de Acucar (PCAR4.BR,
CBD), or GPA.
"Today, I start a new challenge in my life, I am very happy and
excited," Mr. Diniz said after Tuesday's assembly. The
businessman's election wasn't unanimous. Around of 6% of BRF's
shareholders that participated in the meeting voted against his
election.
However, the move has upset French retail group Casino
Guichard-Perrachon SA (CGUSY, CO.FR), which controls GPA. Casino
had said it wants the Brazilian businessman to resign as chairman
of GPA if he were elected to run BRF. The group sees a potential
conflict of interest with Mr. Diniz holding both positions because
BRF is a major supplier for GPA.
Created by a 2009 merger between Sadia SA and Perdigao SA, BRF
operates in the segments of poultry, pork and beef, industrialized
meats and margarine, among others.
Mr. Diniz and Casino owner Jean-Charles Naouri have had open
conflicts in recent years after Mr. Diniz attempted to back out of
a 2005 deal to hand over control of GPA, which was founded by Mr.
Diniz's family.
Earlier Tuesday, Mr. Diniz sold 7.9 million preferred shares of
GPA, the equivalent to 21.9% of the GPA shares he had before the
auction, for 853.4 million Brazilian reais ($430.9 million). Mr.
Diniz still owns 28.3 million shares in CBD.
Mr. Diniz 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 BRF.
According to a person close to Mr. Diniz, the businessman is
seeking to diversify his investments.
Write to Luciana Magalhaes at luciana.magalhaes@dowjones.com