French Casino Guichard-Perrachon (CGUSY, CO.FR) submitted
Wednesday a counter-claim against Brazilian businessman Abilio
Diniz in an existing arbitration procedure.
Casino, which controls Brazil's largest retail group, Grupo Pao
de Acucar (PCAR4.BR, CBD), or GPA, seeks a declaration that Mr.
Diniz's election as chairman of food company BRF-Brazil Foods S.A.
(BRFS, BRFS3.BR) conflicts with CBD's interest in violation of the
Brazilian law and the shareholder's agreement, the French company
said in a statement.
Mr. Diniz is also GPA's chairman and BRF is a major supplier to
the company.
Before his election at BRF, in April, Casino wanted Mr. Diniz to
resign as chairman of GPA because it saw a potential conflict of
interest with Mr. Diniz holding both positions.
Created by a 2009 merger between Sadia SA and Perdigao SA, BRF
produces poultry, pork, beef, processed meat and margarine. It has
65% of the Brazilian market in some segments.
Mr. Diniz has said several times he doesn't see a conflict of
interest and has reaffirmed he intends to remain as chairman of
GPA.
Mr. Diniz and Casino Chief Executive Jean-Charles Naouri have
clashed 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.
Write to Luciana Magalhaes at luciana.magalhaes@dowjones.com
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