News: 'Reliance eyes stake in Carrefour'

(RTR 14/03/2007) Mumbai - An Indian television station reported on Wednesday that Reliance Industries Ltd is in talks to buy a stake in French retailer Carrefour.

Reliance Industries Chairman Mukesh Ambani is scheduled to visit foreign retailers shortly, NDTV Profit said, citing unnamed sources. It gave no further details. A spokesman for Reliance Industries, which is India's largest private company, declined comment.

The president of Reliance Retail Ltd., a wholly-owned unit, told Reuters on Tuesday he was not aware of any plans to buy a foreign retailer, following a local news report that the company was looking at such a move.

Reliance, which operates the world's third-largest oil refinery, is spending more than $5.5 billion on its push into the Indian retail sector, with formats ranging from convenience stores to hypermarkets.

India's fast-expanding but tightly controlled retail market has attracted the likes of Wal-Mart Stores Inc. which is signing a cash-and-carry venture with India's Bharti Enterprises.

Indian Trade Minister Kamal Nath said last month that Carrefour, the world's second biggest retailer, was on the verge of signing a deal with India's Wadia Group.

French billionaire Bernard Arnault recently bought a 9.8 per cent stake in Carrefour, prompting speculation of a buyout attempt. The Halley family owns about 13 per cent of Carrefour.

A Web site reported on Wednesday, citing banking sources, that the Halley family was seeking to sell its stake.