Speculation over Carrefours plans in Brazil mounts

Speculation over Carrefour's plans in Brazil mounts

French retail giant Carrefour is reportedly looking at raising BRL5bn (US$2.1bn) through the sale of a stake in its Brazilian unit.

According to Reuters, the French retailer is in talks with potential bidders including Brazilian tycoon Abilio Diniz and an un-named sovereign wealth fund. The news wire cited a person with "direct knowledge" of the situation.

In recent months, there has been speculation Carrefour had hired investment banks to prepare for an IPO of its Brazilian arm.

Last week, Carrefour CEO Georges Plassat confirmed that the group was looking at ownership options for its Brazilian business but indicated that Carrefour has yet to make a decision.

"I insist we will not be doing anything in 2014 but I believe we will be ready in 2015. Whether it be opening up our capital to a local investor, a big investor, whether it be an IPO, whether it be a combination of both, all of that is possible," Plassat said

Carrefour did not return requests for comment.