CARREFOUR supervisory board to back new seats demand

According to unconfirmed reports in the French press, the supervisory board of Carrefour is likely to recommend that the group’s management committee accepts the request of Colony Capital and Arnault for two board seats. It is also reported that Carrefour's leading shareholder, the Halley family, has set out strict conditions for backing the claim for two board seats. The Halleys have asked Arnault and Colony Capital to issue a statement of support in the retailer's strategy and management, while also pledging not to increase their holding, although it is believed that Arnault and Colony Capital have refused these conditions. There are also unconfirmed reports this morning that the Halley family has asked HSBC and Lehman Brothers to look at what options the family has for its holding in the retailer. The mandated banks have reportedly contacted several private equity funds, including Apollo Management, to inform them they are examining various possibilities, including the sale of the Halley's holding.