Casino Ups Stake in Brazil Retailer

France’s Groupe Casino has acquired 2.2m new shares of Brazil-based CBD’s preferred stock for a total of BRL71m, raising its stake to 35.4% from 34.8%. Under a deal initially agreed in 2005 Casino, transferred to CBD goodwill arising on its investments in the company, so that CBD could deduct the related amortization from its tax expense, as allowed under Brazilian tax and securities legislation. In exchange for the transferred goodwill, CBD has agreed to pay 80% of the tax savings back to Casino in the form of new CBD preferred stock.