France's Casino (CASP.PA) raised the stakes in a battle with Brazil's biggest retailer on Tuesday by taking legal action to stop talks between its Brazilian partner and rival Carrefour. Casino filed for international arbitration against Brazilian businessman Abilio Diniz and his family, its partners in Grupo Pao de Acucar (CBD.N)(PCAR4.SA), alleging that any talks with Carrefour (CARR.PA) would flout the terms of a partnership deal dating back more than a decade. Diniz, Pao de Acucar's 74-year-old chairman and son of the company's founder, recently approached Carrefour to discuss a potential merger with the French group's Brazilian unit, according to people familiar with the matter. The arbitration filing is the latest sign of growing strain between Casino and Pao de Acucar, whose aggressive expansion into the home appliance business helped it regain the top spot in Brazil's $230 billion retail market but also raised concerns it is overstretching in its zeal to fend off rivals such as Carrefour and U.S.-based Wal-Mart Stores.
Companhia Brasileira De Distribuicao (CBD) is a Brazil-based food retailer. Shares of CBD fell by 2.78% or $-1.16/share to $40.61. In the past year, the shares have traded as low as $30.08 and as high as $46.27. On average, 597484 shares of CBD exchange hands on a given day and today's volume is recorded at 875053.
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