Bloomberg News

Carrefour to Name New Board of Directors, Executive Team

June 04, 2008

Carrefour SA (CA), the world's second-largest retailer, said it will create a new board of directors and an executive team to speed up decision making.

The shuffle comes after billionaire Bernard Arnault and his investment partner, Los-Angeles-based private equity group Colony Capital LLC, raised their stake in the retailer to 10.7 percent in April. They became Carrefour's main shareholder after the Halley family, with 13 percent, dissolved a shareholding pact, allowing individual members to sell their stock.

``There is a need to make decisions and execute our strategy faster,'' Chief Executive Jose Luis Duran said today on a conference call from London. ``We can do that with a strong board and a clear mandate for the CEO and his team to take the business forward.''

Arnault and Colony have been working with managers to prepare for a sale of some of Carrefour's real-estate. The retailer plans to pursue 1.5 billion euros ($2.3 billion) of private property sales by the end of the year and make an initial public offering for Carrefour Property once stock markets improve, Duran has said.

Composition of the new board of directors will be announced tomorrow and it will become effective in early August, the executive said. The retailer will hold an extraordinary shareholder meeting in late July, Duran said.

The new board of directors will replace the current supervisory board while the executive team, headed by Duran, will replace the former management board, the executive said.

``I am going to propose the board's evolution, but not before the shareholder meeting,'' Duran said during the conference call.

Former Chairman Robert Halley was replaced by Vice-Chairman Amaury de Seze last month. De Seze will become the Chairman of the new Board of Directors, Carrefour said.

To contact the reporters on this story: Ladka Bauerova in Paris at lbauerova@bloomberg.net;

To contact the editor responsible for this story: Keith Campbell at k.campbell@bloomberg.net.


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