UPDATE 1-Tycoon Diniz buys stake in Carrefour's Brazil unit, source says
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By Guillermo Parra-Bernal
SAO PAULO Dec 17 (Reuters) - Brazilian billionaire Abilio Diniz agreed to buy a 10 percent stake in Carrefour SA's Brazilian unit, a source with direct knowledge of the situation said on Wednesday, potentially strengthening its ability to take on the supermarket chain Diniz's father founded.
Under terms of the deal, Diniz, whose Peninsula Participações holding company has been on an investing spree over the past 18 months, will pay between 500 million euros ($615 million) and 600 million euros for the stake, said the source, who requested anonymity because the talks are private.
A deal with Carrefour would mark Diniz's return to retailing. The eldest son of the founder of GPA SA, Carrefour's Brazilian arch rival, he left the company in September last year to turn around BRF SA, a Brazilian processed foods company that is the world's No. 1 poultry producer.
The transaction does not include Carrefour's Atacadão warehouse retailer, according to the source.
The stake will give Diniz the right to appoint two members to the board of directors of Carrefour's Brazil unit but no "management rights," the source said.
A spokeswoman for Península declined to comment, as did Carrefour through media officials based in Paris and São Paulo.
Diniz had already teamed up with buyout firm Tarpon Investimentos SA in a recent purchase of Carrefour stock. Continuación...