Lars Olofsson takes command at Carrefour meeting | RetailDetail

Lars Olofsson takes command at Carrefour meeting

The crucial Carrefour stockholders' meeting in Paris promised to be turbulent and lived up to all expectations. While outside the trade unions protested, the meeting inside the Carrousel du Louvre in Paris tried to decide on quite a few important issues.

Spanish discounter Dia goes to Madrid stock exchange

Hard discount branch Dia's flotation had been expected to happen for some time. In this meeting, the stockholders finally agreed to start the process. Blue Capital, in which major shareholders Bernard Arnault (LVMH) and Colony Capital (private investment fund) cooperate, had been trying to force this move past the trade unions for a while.

President De Sèze leaves, Olofsson takes over his tasks

The second item came to more surprise, as Amaury de Sèze, president of the board of directors, announced the merger of his job and that of the general director into a new “Président Directeur Général”, which will be Lars Olofsson. Exit De Sèze, in a rather unexpected way...

 

It is true that Proxinvest, a group advising a number of shareholders, had asked De Sèze to step down because he had not been forceful enough to balance out Blue Capital. De Sèze's final act was to defend Blue Capital – holding 20% of Carrefour's votes, as having “a long term vision” and “just as eager to win this battle as everyone else”.

'Almighty' Olofsson: heavily trusted or easy scapegoat?

With his new competences, Olofsson (aged 59) is virtually almighty at Carrefour and he could force his restructuring plans through the hierarchy. Analysts are not completely certain about this move, pointing out that either “Olofsson has earned Blue Capital's trust” and “this is a move to express their trust in Olofsson, hoping the market will follow”, or that “Olofsson will be the only scapegoat if things go wrong”.

 

It is unsure whether or not Olofsson has really earned the major stockholder's trust, as the two have been fighting about selling out the real estate branch as well. To make sure things go their way, Blue Capital have placed one of their trusted people, Sébastien Bazin, at Olofsson's right hand as vice president of the board of directors.

  

Carrefour to cut 4.5 billion before 2014 

Nonetheless, Olofsson did seem more confident than ever, confirming his will to “carry out the strategic plan, even when in difficult circumstances.” He repeated he wants to cut 4.5 billion euro in three years and roll out the Carrefour Planet scheme even faster than expected.

 

He did however point out that the situation at Carrefour remains very difficult, with the many changes at the top at Carrefour France, the social tension, the delay of Carrefour Property's flotation and the crashing share value (-35% since September). Thus, he said that he “understands people are worried, but they need to see the long term view of the projects” and was sure that “the Carrefour Planet-plan is capable of really turning the tide for us”.

 

Carrefour stays in Brazil,  no news about Casino-partner

When asked about the controversial plans to invest in Brazilian supermarket giants Pão de Açucar (currently twinned with French rivals Casino), Olofsson did not respond clearly, but stated merely that “Carrefour will not leave Brazil”.

 

During the meeting, it was also announced that Société Générale had increased its participation in Carrefour to 7.9%, making it the second investor in the chain. Insiders however do not see this as a permanent move, but merely as a short term transaction with shares and derivatives that just happened to take them over the important 5% threshold – the reason why the move had to be announced publicly.

 

Shares, down 35% since September, now +1.7%

All the plans and moves that were expressed and concluded during this meeting, had quite a meagre short time result: Carrefour's shares went up 1.7%, less than the stock exchange's total of 2.04% and nowhere nearly enough to solve the 35% crash the shares went through since September.


The crucial Carrefour stockholders' meeting in Paris promised to be turbulent and lived up to all expectations. While outside the trade unions protested, the meeting inside the Carrousel du Louvre in Paris tried to decide on quite a few important issues.

Spanish discounter Dia goes to Madrid stock exchange

Hard discount branch Dia's flotation had been expected to happen for some time. In this meeting, the stockholders finally agreed to start the process. Blue Capital, in which major shareholders Bernard Arnault (LVMH) and Colony Capital (private investment fund) cooperate, had been trying to force this move past the trade unions for a while.

President De Sèze leaves, Olofsson takes over his tasks

The second item came to more surprise, as Amaury de Sèze, president of the board of directors, announced the merger of his job and that of the general director into a new “Président Directeur Général”, which will be Lars Olofsson. Exit De Sèze, in a rather unexpected way...

 

It is true that Proxinvest, a group advising a number of shareholders, had asked De Sèze to step down because he had not been forceful enough to balance out Blue Capital. De Sèze's final act was to defend Blue Capital – holding 20% of Carrefour's votes, as having “a long term vision” and “just as eager to win this battle as everyone else”.

'Almighty' Olofsson: heavily trusted or easy scapegoat?

With his new competences, Olofsson (aged 59) is virtually almighty at Carrefour and he could force his restructuring plans through the hierarchy. Analysts are not completely certain about this move, pointing out that either “Olofsson has earned Blue Capital's trust” and “this is a move to express their trust in Olofsson, hoping the market will follow”, or that “Olofsson will be the only scapegoat if things go wrong”.

 

It is unsure whether or not Olofsson has really earned the major stockholder's trust, as the two have been fighting about selling out the real estate branch as well. To make sure things go their way, Blue Capital have placed one of their trusted people, Sébastien Bazin, at Olofsson's right hand as vice president of the board of directors.

  

Carrefour to cut 4.5 billion before 2014 

Nonetheless, Olofsson did seem more confident than ever, confirming his will to “carry out the strategic plan, even when in difficult circumstances.” He repeated he wants to cut 4.5 billion euro in three years and roll out the Carrefour Planet scheme even faster than expected.

 

He did however point out that the situation at Carrefour remains very difficult, with the many changes at the top at Carrefour France, the social tension, the delay of Carrefour Property's flotation and the crashing share value (-35% since September). Thus, he said that he “understands people are worried, but they need to see the long term view of the projects” and was sure that “the Carrefour Planet-plan is capable of really turning the tide for us”.

 

Carrefour stays in Brazil,  no news about Casino-partner

When asked about the controversial plans to invest in Brazilian supermarket giants Pão de Açucar (currently twinned with French rivals Casino), Olofsson did not respond clearly, but stated merely that “Carrefour will not leave Brazil”.

 

During the meeting, it was also announced that Société Générale had increased its participation in Carrefour to 7.9%, making it the second investor in the chain. Insiders however do not see this as a permanent move, but merely as a short term transaction with shares and derivatives that just happened to take them over the important 5% threshold – the reason why the move had to be announced publicly.

 

Shares, down 35% since September, now +1.7%

All the plans and moves that were expressed and concluded during this meeting, had quite a meagre short time result: Carrefour's shares went up 1.7%, less than the stock exchange's total of 2.04% and nowhere nearly enough to solve the 35% crash the shares went through since September.


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