Shares in Carrefour rose yesterday after a report claimed that the group’s biggest investors, Colony Capital and Bernard Arnault, are pressing for an exit from emerging markets such as China and Brazil. The report by French daily Le Monde said the two shareholders have been pressurising CEO Lars Olofsson to sell the group’s outlets in such countries, hoping to recover some of their investments.

Carrefour has seen its market value drop about 30% since the private equity giant and the billionaire investor joined its board in 2007. The paper, citing an anonymous source close to the matter, said the investors are looking to get back some of their money through a special dividend. The two own about 14% of Carrefour’s stock through their investment vehicle, Blue Capital.

The report sent shares in the country up 3.1% yesterday on the Paris stock exchange, even though analysts said such a move would be a giant “step backwards”. The group’s units in Latin America and Asia have been consistently driving overall turnover, with regular double-digit turnover gains being reported in both regions. In contrast, sales in France have been either down in recent years or just barely up.

NamNews - Tuesday 29th September 2009

 

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